[ppeetteerr]

A one-time wealth tax doesn't seem to make a ton of sense.

The current loop hole is that loans are not taxed so people take out loans against their assets thus never paying income tax. Tax those loans and refund taxes when the loans are repaid.

[JumpCrisscross]

> current loop hole is that loans are not taxed

The loophole is the stepped-up basis. Loans are fine since they have to be repaid one way or another. Loans that defer taxation until the liability extinguishes itself are the problem.

[mindslight]

The way I understand it, the point of stepped-up basis was to avoid double taxation with estate tax. The problem is that estate tax has been mostly de facto eliminated.

Also I'd argue that the loophole is the not having to treat the loan as a concrete valuation/liquidity event, as the goal of most tax regulations is to prevent people delaying paying tax (with things like IRAs being exceptions).