Did I say mandatory? I meant optional! You’re “free” to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
Did I say mandatory? I meant optional! You’re “free” to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
Ummm I didn’t know they could be used as collateral. I’ll have to research that. It doesn’t sound right to me for the same reason they definitely should NOT be taxed. How does that even work? You buy stocks and you hold them, then, what the government taxes you every year until there ARE no gains. Or perhaps the stock plummeted and you have a loss, but it’s ok, you lost money on the investment AND to the government. Until you sell an investment you haven’t made any money on it and it should NOT be taxed. If you have a 401k this would affect you too, not just rich people.
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This isn’t common sense. It’s stupid. Please explain how it works.
It’s simple, if you’re a billionaire prepare to get soaked
That sounds like a very compelling argument.
Haha ty. But in seriousness, I do think there is a level of wealth that one can attain that becomes political.
Like civil servants, attorneys, judges, healthcare workers, etc, are held to different standards and subject to different rules (same laws ofc), because of the power they may wield over others.
Oligarchs individually can affect the lives of millions of people. That’s the kind of power we put checks on.
Absolutely, but that’s not what we’re talking about. We’re talking about creating a tax on an unknown number that will apply to a lot of not rich people. And then taxing it again later for I -don’t-know-how-many times.
How about instead, we make a flat tax and remove loop holes in or any number of ways that apply across the board.
I don’t have a problem with people wanting to be rich or even being rich. I have a problem with how they get there and what they do when they get there. It’s completely unfair and oppressive, crushing people who dare stand in the way, forced labour, buying politicians, etc. I’m sorry but I’m not a communist. Just arbitrarily deciding anything a rich person does should be illegal because a rich person does it is just silly.
There has to be hedging requirements right? If you have 100 million of growth stocks for example, surely you’d need to have put option contracts for that loaning insitution to accept the risk of unrealized assets to secure a loan of that size?
Anyone know how that works? Im sure each loan is reviewed thoroughly for its risk at that level.
Put options are a specific investment vehicle. The OP is just making a blanket statement about unrealized gains. Many, many NOT rich people have unrealized gains. And there literally is NO value to tax. The investment could go bust and there is a loss, no gain at all. At what point in a long term investment is the tax assessed?
But the point of a put contract would be to lock in the strike price for a duration determined by the expiration date. If put contracts were purchased for the duration of the loan, the potential risk of being unable to pay the bank due to depreciation would be mitigated.
Like how farmers buy puts on their commodity to protect themselves from a bad year.
It costs money to buy a put contract to protect the loan.
So if you need a 1mil loan, now you also gotta buy puts that’ll protect a downturn of 1mil. So now you gotta sell stock which will be taxed. It’s less than 1mil so you’re taxed less, but you will have taxes.
Edit: you could zero cost collar (puts + covered calls) your investment to protect it’s current value, but you’ll give up potential gains as well to get the zero cost part. But this would be a way to protect the value without selling. If the options get exercised though, you’d then have some taxes to pay.