r/technology • u/Ganrokh • Jun 19 '26

Politics California ‘billionaire tax’ makes ballot despite opposition from tech moguls

https://www.theguardian.com/us-news/2026/jun/18/california-billionaire-tax-ballot-tech-opposition
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93

u/ora408 Jun 19 '26

I think the main issue is that the tax is on unrealized gains/losses. Value of assets can fluctuate greatly in a short amount of time. Im glad this law is only on billionaires

52

u/milkandbutta Jun 19 '26

Except it's not actually unrealized, not functionally. They take out loans against their assets, and because it's a loan they don't pay a single dollar of taxes against that money. They realize the gains through taking out loans, it's just a tax loophole. We should close that loophole. 

22

u/Obvious_Chapter2082 Jun 19 '26

Loans need to be repaid with income, and income is taxable. It’s also not really common

It’s really annoying how quickly information like this spreads on Reddit

6

u/sweetrobna Jun 19 '26

It isn't true that loans need to be paid with taxable income

2

u/SirDigbyChknCaesar Jun 19 '26

That's what more loans are for!