Unrealised wealth tax.

It occurs to me that there's probably a better way between the tax loophole of untaxed wealth that silicon valley is abusing right now, and potentially a startup killing unrealized appreciating wealth tax.

The untaxed appreciating value is important for attracting investment, and probably even more important from the standpoint of encouraging people to reinvest in their company instead of drying profits out.

The loophole that the super rich tech entrepreneurs are playing, is putting up their shares as collateral, and then taking untaxed loans out on those shares and treating that as their income, and either carrying that debt until they die and the debt is forgiven and not taxed, or forfeiting the shares by defaulting on the loans. Secondarily, there's also using business perks as untaxed income, such as company housing, company cars, and various corporate luxuries that the owners use.

There are some other tricks, but these are the ones that seems to be most abused. Simply we need to tax loans on the appreciated value of stock unless the loan is shown to be for direct capital investment in the company. We also need a long overdue tax on perks, which is a huge taxes loophole that the rich have been exploiting since forever.