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The government ends up with cash, not a pile of Microsoft stock, which is the situation the OP was advocating against. The difference is the government doesn't have to sell off and devalue the stock to extract the value from it.

Yes, technically the government is inserting itself into the transaction and seizing some of the value. But that's what all taxes do.

The government is also the party that is responsible for enforcing the terms of the transaction (via the justice system) if one party where to try to defraud the other. In effect it's more like a transaction fee.



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