2 ms·

I’ve said this a number of times before, but I still can’t see why loans > $1m against share-based collateral shouldn’t be taxed as income.

• 1123581321 5y ago
  It’s because loans must be repaid. Perhaps there could be a fee on the collateral process itself.
  • dredmorbius 5y ago
    Possibly: tax the interest on those loans at the bank. Possibly count such loans against assets (reducing banks' lending capability). I'm not positive this works out, but: - Banks tend to be well-established, identifiable entities. - They are highly regulated and audited. The question I'm not certain of the answer is what the result of such a tax would be. I suspect such loans would tend to be crowded out or inerest rates increased (raising costs to the billionaire utilising this cash-out option). This seems to me along the lines of an HFT transaction tax, possibly operating similarly.