alt Hacker NewsWealth taxes require liquidating investments early and don’t promote good practices, especially if they are applied broadly. I would opt for a tax on loans instead (you have to prepay tax on loans that use investments as collateral and no more step up in basis on death).
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andriy_koval • yesterday at 9:30 PM
> Wealth taxes require liquidating investments early
it works for RE already without liquidation
> . I would opt for a tax on loans instead (you have to prepay tax on loans that use investments as collateral and no more step up in basis on death).
rich just will move from this scheme to something else, and nothing changes.
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Counterpoint, who cares?
Markets will simply adjust and financial services will arise to smooth instances where liquidation is problematic.
The status quo shifts to optimize once taxes change. Our system will do the same.
I don’t understand why people don’t think it through all the way to the next equilibrium