Re:Tax details of US super-rich allegedly leaked
by knodi123 on Tuesday June 08, 2021 @06:06PM
(#27441619)
Yes, but the difference is that borrowing against your unrealized investments is a way of dodging taxes. I think the tax code can handle that level of subtlety without paying attention to your flippant reductio ad absurdum.
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Re:Tax details of US super-rich allegedly leaked
by imgabe on Tuesday June 08, 2021 @06:11PM
(#27441685)
Sure and borrowing $750k to buy a house is a nifty way for me to get $750k without having to pay income taxes on $750k worth of income. What an amazing loophole that gives me completely free money and no taxes!
What the government could do is stop loaning out money at 0% (i.e. printing free money which inflates assets, like stocks held by wealthy people). If the prime rate increased, the rate banks would charge on asset-backed loans would also increase, which would make it less attractive than just selling the asset and paying the capital gains tax.