Except that they do just that by borrowing money against their stocks, which also incidentally allows them to avoid paying taxes. That’s how Musk bought Twitter.
I think it might be a good idea to tax loans like this as income, but I’m not an economist and am not sure what the follow on effects would be. I feel like if there were exceptions it might be used as a loophole, but if there aren’t it might affect poorer people trying to get loans for housing.
Except that they do just that by borrowing money against their stocks, which also incidentally allows them to avoid paying taxes. That’s how Musk bought Twitter.
Yup, their latent wealth grows faster than what they borrow to use as actual spending, they literally don’t spend money, they accumulate it
I think it might be a good idea to tax loans like this as income, but I’m not an economist and am not sure what the follow on effects would be. I feel like if there were exceptions it might be used as a loophole, but if there aren’t it might affect poorer people trying to get loans for housing.