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No tax perhaps, but interest has to be paid.

Of course, in a ZIRP fantasyland the interest is negligible.



If the choice is 40% tax or 2% interest...


I mean, long term rate is 20%, so taking a margin loan at 2% to finance consumption is a bet that you have less than 10 years to go…


That's assuming the asset that would've been sold doesn't increase in value. It's likely that the asset will increase in value more than the cost of the loan.


You are conflating assets and liabilities. Are you really suggesting people pay taxes on their liabilities?

That would be insane.




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