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Joined 2 years ago
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Cake day: June 11th, 2023

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  • Net worth taxes are stupid.

    Just tax loans collateralized by stock as income, and give a deduction on the interest when they pay back the loan.

    That’s currently the biggest loophole the wealthy use. They use their stock portfolios as collateral for loans, which are untaxed. Then as their portfolio grows they take out more loans to cover the old one and fund their lifestyle, or they liquidate some of their assets at the much lower capital gains tax to pay it back.

    Just tax collateralized loans as realized gains and be done with it.