[a_c_s]

You aren't arguing against what I wrote: an investor currently pays no tax on their own stock going up.

I'm suggesting if an investor in NVIDIA uses their $100 Million in stock that they bought for $10 Million to get a loan they would have to pay capital gains on that $90 Million capital gain. Just like they would have to pay capital gains when they sell the stock. No stock sale has to occur - the investor could pay $18 million in taxes out of their loan.

When we decide to tax things is inherently arbitrary: I'm suggesting that we count "borrowing" against an asset as a taxable event which is a simple and straightforward change that makes buy-borrow-die more equitable: government gets taxes at the same time as the investor gets the benefits.

[Detrytus]

But that’s the thing: until you sell all the “capital gains” are illusionary: you borrow against your stock and tomorrow it falls down 50% and now you’re double screwed because you owe tax on those illusionary gains and your bank is also after you, demanding extra collateral on your loan. So your proposal would essentially ban borrowing against stocks completely