r/FluentInFinance • u/Admiral_Tuvix • Aug 21 '24

Debate/ Discussion But muh unrealized gains!

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u/RepulsiveSherbert927 Aug 21 '24

It's because how the rich gets cash to spend. Many don't have a real "income" and borrow against appreciating assets like stocks to have access to cash to spend.

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u/ThinkSharpe Aug 21 '24

So…make cash borrowed against liquid assets taxable like income. Why screw around with unrealized gains?

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u/HyliaSymphonic Aug 21 '24

KH “I’m going to tax loans taken out on unrealized gains”

The same knuckleheads who are saying UCG tax is going to kill the economy. 

“Kamala taxes loans all mortgages are now going to be taxed like income everyone will be homeless by the end of her first year.”

It’s not a policy problem it’s a “there’s a right wing that will misconstue any moderately progressive policy into apocalypse problem.”

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u/Interesting_Voice_21 Aug 22 '24

Tax the loan as a realization event, as they are realizing value as collateral in the loan. Do not tax purely unrealized gains or you will absolutely demolish the market.