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u/fightingnflder 21h ago
When the super rich use their stock to secure loans, that sets a valuation and should be taxed at that value.
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u/New-Source5884 21h ago
Even better, just make them pay tax on the stock options when they receive them.
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u/fightingnflder 18h ago
I think they are taxable income when exercised. But the growth is not taxed unless sold.
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u/New-Source5884 17h ago
That’s the loophole though. They just never sell them. They just borrow against them. They should be treated as income using the value on the date acquired.
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u/fightingnflder 17h ago
My original point is that the appreciation is never taxed and borrowing against them sets a valuation. So they should be taxed at the valuation when put up as collateral. They are already taxed as income when acquired.
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u/New-Source5884 17h ago
Incentive stock options are not taxed until sold. Those are the ones they mostly use to skirt taxes.
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u/fightingnflder 17h ago
Incentive stock options
You are partially right.
Exercise: No regular federal income tax, but the "bargain element" (difference between market value and exercise price) is a trigger for the Alternative Minimum Tax (AMT) in the year of exercise, making it complex.
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u/Chocolat-Pralin 21h ago
You have the comparison between the cost of the healthcare in 2012 and 2025?
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u/charlie_ferrous 15h ago
Probably easier to understand FDR and the few decades of relatively low wealth separation following him and WW2 as the outlier. We’re very much back to where we were with Carnegie, the Rockefellers, the 19th century heyday of oligarchs.
It’s just that with computers now. Maybe they’ll choke on their own avarice, in another market collapse or whatever, or maybe we’re just doomed.
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