All you have to do is tax them when they use the assets as collateral,
If you tax loans backed by collateral, the banks will just change their lending policies on unsecured personal loans. No collateral = no tax on the use of that collateral. The method of taxation you are suggesting is trivial to evade.
That’s significantly more complicated for no real benefit.
It is more complicated, but the benefit is immense. The benefit is that Shareholding becomes much less valuable to the oligarch Problem Class, and much more valuable to the Working Class. Company ownership and control is driven toward workers. Working Class shareholders become the predominant voice in determining company policy. Profit extraction goes to Working Shareholders rather than the Problem Class.
It actually carries a much higher risk for the IRS as the securities are volital.
Describe that risk. Remember: The IRS is not owed dollars. They are only owed the shares. The dollar value of those shares is entirely irrelevant.
If you tax loans backed by collateral, the banks will just change their lending policies on unsecured personal loans. No collateral = no tax on the use of that collateral. The method of taxation you are suggesting is trivial to evade.
It is more complicated, but the benefit is immense. The benefit is that Shareholding becomes much less valuable to the oligarch Problem Class, and much more valuable to the Working Class. Company ownership and control is driven toward workers. Working Class shareholders become the predominant voice in determining company policy. Profit extraction goes to Working Shareholders rather than the Problem Class.
Describe that risk. Remember: The IRS is not owed dollars. They are only owed the shares. The dollar value of those shares is entirely irrelevant.