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because taxes should be paid on money that exist and can spent. you wanna take a loan against your stock? you pay taxes on that loan. you wanna sell your stoc
by fernandotakai 5y ago
because taxes should be paid on money that exist and can spent.
you wanna take a loan against your stock? you pay taxes on that loan.
you wanna sell your stock? you pay taxes on the stock you sell.
you just get your salary from the company and never sell stock? you pay taxes on your salary, and not on stock that are doing nothing.
- HillRat 5y agoyou wanna take a loan against your stock? you pay taxes on that loan. That’s exactly the problem —- loans aren’t income, they’re debt, and debt isn’t taxed. Worse yet, the ultra-elite can carry out “buy (or ‘found’), borrow, die” strategies that let them pass the debt onto their kids, who can sell the securities at a tax advantage due to the stepped-up basis loophole.
- fernandotakai 5y agobut this is the kind of loophole that should be closed. but they aren't. and now we wonder why some "loopholes" are closed and some are not.