Finally someone who gets it. It isn't impossible to do but you have to take into accoutn that it isn't realized. Imo the best way to do that is actually aggressive consumption taxes on the things that the wealthy primarily consume (vacation properties, yachts, private schools, etc). Taxing loans directly is difficult to do because I imagine you don't want to be taxing student loans or mortgages. I guess you could tax all collateralized loans above a certain collateral value but that can be gamed. So personally I prefer consumption taxes.
> I guess you could tax all collateralized loans above a certain collateral value but that can be gamed. So personally I prefer consumption taxes.
Interesting idea. We sort of already do this, we apply property taxes based on the value of the property as pegged at purchase (re-assessed over time). We could exempt loans on collateral already subject to property (or other value-based) taxes, but could then put a wealth tax on any other asset used as collateral for a loan at the collateral value agreed on by the lender.
