Tax their net worth. The tax should be progressive, so that beyond a certain value, they can’t get any richer even if their investment give high yields. Starting bracket can be 50M, 100M$, at this scale it doesn’t matter much.
The problem is to do that you’ll have to capture the value of all of their assets at a specific point in time. This would require them knowing about it, so they could tank the value before.
But, when they put it up for collateral, they’re saying the assets are worth the amount of the loan, so it should be treated as a realized gain.
Tax their net worth. The tax should be progressive, so that beyond a certain value, they can’t get any richer even if their investment give high yields. Starting bracket can be 50M, 100M$, at this scale it doesn’t matter much.
The problem is to do that you’ll have to capture the value of all of their assets at a specific point in time. This would require them knowing about it, so they could tank the value before.
But, when they put it up for collateral, they’re saying the assets are worth the amount of the loan, so it should be treated as a realized gain.