Comment: Re:Such systems have been proposed before (Score 1) 1064
What happens if the stock price falls considerably, or the company even goes bankrupt? - He decides it's better to lose the underlying collateral (worth less, or possibly nothing). His loan is "free" and no taxes are paid.
What happens if the stock price rises considerably, let's say doubles or quadruples? He can sell a fraction of the stocks to pay for the loans. He pays taxes, but can keep a bulk of his shares and even take out a new loan on that.
Either way he's never going to lose any money. If the stock price rises taxes will be paid eventually, but it will delayed by many years. If the stock price falls taxes will be avoided. But IT stock has never gone down, so we don't need to worry about that... right?