You clearly haven’t thought through the implications of that policy. It is literally forcing the owner to write a call option against their asset that anyone can exercise and without the owner receiving a risk premium. Speculators and arbitrageurs would make a fortune acquiring these assets if the call option was written at fair market value.
It would be like r/wallstreetbets but with everyone’s private property. That will end well.
But they haven't thought through the implications. As far as I can tell, they ignore the implications of optionality which has mature mathematical frameworks for reasoning about such things. That's like making a Newtonian argument in a relativistic universe. People will analyze it in terms of options calculus even if the authors didn't -- I know I would.
I'd like to see an argument explicitly from the calculus of option theory, which is the operative mathematics here. I am not saying that a compelling supportive argument does not exist, just that a credible argument must be presented in these terms because that is the central mechanic. Maybe there are some subtle arguments that make it a good idea in this context but on the surface it is quite apparently a really bad idea with a lot of literature to support that impression.
> if the call option was written at fair market value.
There are several solutions to this hypothetical problem.
The parent said the owner decides the value of their premium item. The owner is claiming indifference as to whether it is sold at their chosen value or not.
If that's only fair market value (in the rest of the market), the owner is indifferent to owning the asset at all and is just inadvertently hoarding it. The economy works better for everyone if the owner is encouraged to sell to whoever values it most highly.
If the call option is called in (above the owner's valuation plus costs), an auction could be triggered, avoiding the arbitrage of first dibs.
Overall, this is a hair on the back of a nit. The law should be that you pay tax on your global wealth - avoiding and evading tax is already a choice that people make. It's nothing new.
It would be like r/wallstreetbets but with everyone’s private property. That will end well.