Interesting article that basically says that the best way to tax the ultra-wealthy would be to put a tax on very large loans using assets as collateral. Currently, the wealthy can use this as a loophole to avoid paying the capital gains tax.
What do people think about this?
It seems to me like a much smarter alternative to the tax on unrealized capital gains, because it solves the problem of figuring out how to value all kinds of obscure investments that could have no agreed-upon market value (i.e. they aren’t traded on an exchange and the value is not necessarily known) or a rapidly fluctuating market value - once someone has to declare that their investments are worth X in order to take out a loan, you know you can tax them on that exact number.