There are numerous things to make this proposal reasonable.
Count as income depending on amount of loan, nature of collateral, and usage of the loaned money.
A loan taken out against primary residence used for purchase of same residence under a million dollars? Not applicable. Proceeds used for education, within reasonable limits? Not applicable.
When a loan is taxed as income, provide for tax credits upon repayment reconcile ultimate use of “real” income. That way you avoid the “double tax” compliant they keep whining about.
I find the tax loans approach ultimately the most workable approach to close the loopholes.
I can’t support that. I myself once had 20 million in stock options but couldn’t sell it. By the time I could sell it, it was worth zero. Yet you in your system I would have paid taxes on it.
Stock fluctuates in value to much. We just need way to force them sell the stock and then tax the stock as ordinary income.
No, you would pay taxes on the unrealized gains of your assets. So if your assets are worth 0, then you pay 0. If they are worth 20mil, then you pay taxes on 20mil.
Just a quick reminder, one of the main principles of capitalism is risk vs reward.
That’s my point. They were worth 20 million. Due to legal restrictions I couldn’t sell. As such I would have to pay taxes on 20 million. When I could sell they were worth zero.
This is easy to solve. Count the loans as ordinary income. Problem solved.
I had to take an insane amount of loans out to get my nursing license. I’ll be paying them off for over a decade. I don’t like this idea
There are numerous things to make this proposal reasonable.
Count as income depending on amount of loan, nature of collateral, and usage of the loaned money.
A loan taken out against primary residence used for purchase of same residence under a million dollars? Not applicable. Proceeds used for education, within reasonable limits? Not applicable.
When a loan is taxed as income, provide for tax credits upon repayment reconcile ultimate use of “real” income. That way you avoid the “double tax” compliant they keep whining about.
I find the tax loans approach ultimately the most workable approach to close the loopholes.
No, count unrealized asset value as income.
You gained 2 billion in stock value, but didn’t sell? You get taxed on that stock gain.
I can’t support that. I myself once had 20 million in stock options but couldn’t sell it. By the time I could sell it, it was worth zero. Yet you in your system I would have paid taxes on it. Stock fluctuates in value to much. We just need way to force them sell the stock and then tax the stock as ordinary income.
Once it went to zero, it would have been a loss and canceled out?
Well if I had to pay unrealized gains I’d have zero but have to pay taxes on 20 million.
It’s why we don’t do it. It would be overly complicated.
No, you would pay taxes on the unrealized gains of your assets. So if your assets are worth 0, then you pay 0. If they are worth 20mil, then you pay taxes on 20mil.
Just a quick reminder, one of the main principles of capitalism is risk vs reward.
That’s my point. They were worth 20 million. Due to legal restrictions I couldn’t sell. As such I would have to pay taxes on 20 million. When I could sell they were worth zero.
So I would have ended up negative.
Sounds like that stock wasn’t worth the risk then. That’s capitalism in a nutshell brahski, people lose money betting on the market every day.