HockeyDad wrote:like a home equity loan?
In terms of collateral, yes.
But, a loan on an "unrealized gain" is much more abstract because the inchoate stock options need not necessarily even ever be exercised or any portion of taken ownership of during the borrower's lifetime, or anytime thereafter. The "unrealized gain" can even be passed down from generation to generation tax free (in certain circumstances). In other words, one can get all the benefits of ownership without ever fulfilling what I believe are the obligations that come along with ownership. It also seems to differ in that the benefit of ownership of the "property" is in one person/entity, but possession is held by another (the corporation).
I have no beef at all with with the necessary, private aggregation of capital that enriches our country. I see that as a good thing. And, I don't favor taxing the uber-wealthy just because they are uber-wealthy and can afford to pay without a change in lifestyle. In most cases, they have "earned" it and IMO deserve it. I also don't want them to be an "easy target", but at the same time they shouldn't get an exponentially bigger, better, tax-breaks than the rest of us, just because they are uber-wealthy or part of the "ruling class."
I do not know what is "right" or "fair" as they are both subjective, but I just feel that there is a smell of rotten fish that needs to be figured out.
Now, back to the equity loan on tangible, real property analogy. No one will loan money to you or me without recourse against a piece of property we have a mere purchase option on, but which we have no obligation to exercise and can walk away from or avoid at anytime we wish, making the collateral worthless, unless we were are uber-rich In my mind, it's just not a good enough reason.