> Yes, if income really is the thing that should be taxed, then it makes logical sense to tax unrealized gains IMHO, that's a massive claim thrown at the reade

> Yes, if income really is the thing that should be taxed, then it makes logical sense to tax unrealized gains IMHO, that's a massive claim thrown at the reader without any explanation. Why is it logical? Unrealized gains are not income at all (and they fluctuate over time.) If anything, it seems quite logical and sensible NOT to tax unrealized gains... > One common technique is to borrow money and use the stock as collateral. Under our current regime, that borrowing is not taxed. It is not taxed because a loan is not income as it is has to be repaid. We are not taxed on the amount of our mortgages, for instance. However, if the "loan" is in fact not expected to be repaid then I believe that is a tax scam.