High level, it closes a financial engineering loophole (buy, borrow, die [1]). The taxable event is when you get liquid, and a loan is liquidity. The tax code requires a patch, that’s all.
I agree buy, borrow, die is a problem but the “weird” feature of tax law that makes that possible is the step up in basis. (Getting rid of that has its own challenges I’m sure.)
My issue with the whole "Elon has to pay taxes" thing is that there are loads of people (fans?) fighting over why he shouldn't have to. It's the richest dude in the world, he really doesn't need defending for everyday people.
I also like the cool stuff he does, don't like the non-cool stuff he does, as I do with a lot of people really
When those bits of stock bits are then transferred to ordinary people, they would be entitled to a bit of the dividends of eventually all companies.
Not thought this all the way through and I'm very much not an economist, so there are lots of impracticalities.
In a way, it's the opposite of 'cease the means of production': distribute the 'means' of capitalism.
I imagine there’s a reason people feel more comfortable lending to Elon than to people with a smaller amount of assets, and that it’s not “lol fuck poor people”.