I think rich people will have assets, like stock, and they’ll get a loan out with the stock as collateral. They pay like 2% on the loan, but they get like a million dollars cash. If that was treated like income, they’d pay a lot more taxes.
Not sure the best way to address this, but it should be addressed.
When you use unrealized gains as collateral for a loan, those gains have now become realized, and they are taxed.
Oh, did your stock valuations go up? Did you use that stock to take out a personal loan? You’ve realized those gains. Apply a progressive tax until those loans look more like minimum wage. Make it not worth it to invent value out of fractional reserves in order to bankroll oligarchy.
The fact that this is apparently not done now is the single biggest loophole in the whole system. This is what allows the “unlimited money glitch”.
Making it illegal to consider investments a form of collateral for a loan would be the first step. Prove you can repay based on your annual income or that there’s actual physical assets that can be seized or fuck off.
Make loans above a certain amount count as income. Exempt mortgages below a million dollars. The rich would just have to take out larger loans to offset the taxes. Force taxes to be paid at time of loan receipt. Like payroll taxes. Like everyone else they can get a tax refund if they overpay.
It’s 1000% possible, they just don’t want to do it.
There is truth here.
I think rich people will have assets, like stock, and they’ll get a loan out with the stock as collateral. They pay like 2% on the loan, but they get like a million dollars cash. If that was treated like income, they’d pay a lot more taxes.
Not sure the best way to address this, but it should be addressed.
Simple really
When you use unrealized gains as collateral for a loan, those gains have now become realized, and they are taxed.
Oh, did your stock valuations go up? Did you use that stock to take out a personal loan? You’ve realized those gains. Apply a progressive tax until those loans look more like minimum wage. Make it not worth it to invent value out of fractional reserves in order to bankroll oligarchy.
The fact that this is apparently not done now is the single biggest loophole in the whole system. This is what allows the “unlimited money glitch”.
Making it illegal to consider investments a form of collateral for a loan would be the first step. Prove you can repay based on your annual income or that there’s actual physical assets that can be seized or fuck off.
Make loans above a certain amount count as income. Exempt mortgages below a million dollars. The rich would just have to take out larger loans to offset the taxes. Force taxes to be paid at time of loan receipt. Like payroll taxes. Like everyone else they can get a tax refund if they overpay.
It’s 1000% possible, they just don’t want to do it.