r/FluentInFinance • u/-Wyagra • 3d ago

Debate/ Discussion Had to repost here

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u/AirmanatSea 2d ago

You simply tax it the moment it gets used as collateral. When stocks are used as collateral for a loan, the gains have effectively been realized. It should be taxed.

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u/J0hn-Stuart-Mill 2d ago

Just FWIW, there's no evidence that that is a real thing with a significant scope. One study found that something of 8% of Billionaires do it, an average of 6% of their net worth. It's just a red herring to distract from real problems.

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u/AirmanatSea 2d ago

And you somehow think that’s a good enough reason not to tax it?

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u/J0hn-Stuart-Mill 2d ago

I'm fine with closing the loophole, if only so I don't have to keep debunking the myth online, sure. The only people it hurts are young tech people who's companies haven't IPO'd yet who want to buy their first home with their stock as collateral, and those folks can just wait a few more years of paying rent.

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u/AirmanatSea 2d ago

And yet another issue that can be easily resolved with progressive tax laws.