this post was submitted on 01 Apr 2024
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General Discussion

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[–] Natanael 1 points 5 months ago

It was the first thing I thought of a bit after first hearing of this method of tax dodging a while ago. Nice to see it pick up steam. Not sure how many thought of it independently, I like to believe I helped it spread. :)

The first version of my idea was just to add a straight extra tax for collateral, but on a second thought that could have a bunch of complex side effects and distorted incentives, but making it advance realized gain is very simple and doesn't introduce surprise costs if you suddenly need to sell the asset. You just sum up paid realized gain in all the collateral and subtract that from final total realized gain on the final sale when calculating taxes.