Seems like you could write it off as a business loss. It would tank government revenue in a recession, but perhaps it would also provide an automatic stimulus effect.

It would also make it pointless for a private individual or trust to invest. This is a terrible idea.

Why would it be pointless? I’m not an economist but it seems like it would make investments generally less profitable, but I don’t see it eliminating profits. Further where would billionaires put their money instead? Is the idea that they are just going to buy art and yachts instead?

They'll put their money in New Zealand or Canada or Taiwan, maybe. I know I wouldn't stand for this personally.

In the U.S. you’re required to pay taxes on income made both domestically and internationally. Failure to declare those earnings outside the U.S. would probably be tax fraud.

> In the U.S. you’re required to pay taxes on income made both domestically and internationally.

As a dual filer, I know this is not true. As a U.S. citizen, you are required to file taxes on all income, foreign source or U.S. source, but you are not required to pay taxes on all of it. And why remain a U.S. citizen anyway if you can't afford it?

That is basically how gains/losses from futures, futures options, and index options work:

https://en.wikipedia.org/wiki/1256_Contract