Bifalgorithm post

Why can't we tax billionaires? Because technically, they have no money. They only have stocks. And since these stocks haven't been sold for cash, they're unrealised gains. And the government can't tax a gain that hasn't happened yet. So billionaires don't have the money, but they're worth the money. But here's the question. If they have no money, how do they buy stuff? If Elon Musk wants to buy Twitter for 44 billion, he won't sell his Tesla shares to get the cash. That would trigger a massive tax bill and tank his company's stock price. Instead, he goes to banks and private equities to ask for a loan. But 44 billion is a big loan. The bank would ask, what are they lending it against? Elon Musk says, "Well, of course, my Tesla stocks." So you can buy a thing based on what you have in stocks, but you can't get taxed on it because you haven't sold them. It's a game all billionaires play, whereas if you earn your money in a salary, your money just gets taxed.

Why can't we tax billionaires? Because technically, they have no money. They only have stocks. And since these stocks haven't been sold for cash, they're unrea…