u/km3r wrote (the comment Michael replied to):
A simple solution: treat backing a loan with an asset as a liquidation event for said asset. A home you just bought would have no gains. Billionaire using stock as the asset, would have gains.
u/michaelnovati replied ·
Well the reason they don't sell is to avoid the taxes so doing this would effectively force them to sell -> diversify -> and then use THAT for a loan, which shouldn't be double taxes AGAIN.
I think there is a room for some kind of taxes here though, maybe just a compromise? Like Pay 5% on line of asset backed line of credits draw over $1M or something?