Conversation

Yishan
@yishan
If the problem is billionaires borrowing against unrealized gains, then just require taxes to be paid on unrealized gains when someone uses it as collateral for borrowing. It’s a financial txn that’s identified easily and reported - the assets are even valued at that point.
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Jesse Powell
@jespow
Problem is everything you have is always implicitly collateral for everything you buy on credit of any form. It’s not just billionaires. It’s college students buying burritos. Also, it’s not always 1:1 and loans could be massively over collateralized.
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Yishan
@yishan
Yes, but I’m talking about the instances where loans are explicitly being secured by defined assets, usually under management by the lender itself. I doubt billionaires are taking out loans with “implicit” collateralization.
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Yishan
@yishan
Replying to
@jespow
Do you believe that these issues, and others along this line that you would raise, make the proposal fundamentally flawed or do you feel there are ways to account for these issues?
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