That doesn’t work. Houses are already taxed to hell, even unrealized gains on a house is taxed. So triple taxing when you use a house as collateral would hurt small business owners.
But it’s not extra taxing, it’s just triggering a tax event so realized gain is taxed at that moment instead of some time in the future, which for the billionaires is never.
It is triple tax. You pay tax when you buy the house, you pay yearly tax of the unrealized gain of the increase in your property value. On top of that you want to add a tax when you use property as collateral so in this case a house which small business owners frequently do.
Everyone needs to pay their fair share of taxes. Get rid of deductions for corporations and people with revenue/earnings over a certain amount, say 500k. We need to stop complicating the tax code because that is why there are so many loopholes.
I’m in Canada, maybe it’s different. You pay sales tax on a new house when you buy it, just like any purchase. Theres also land transfer taxes an other fees. When it goes up in value and you sell, you pay capital gains (unless it’s your principal residence, and then there’s an exemption). But until you sell or some other tax event, you don’t pay any tax on its increased value until such a tax event happened. At that point it’s assessed and you owe any tax on the gain. So if a tax event triggers some tax owing (like if using it as collateral triggered this), then later when you sell, you wouldn’t pay on that gain again, only on any gain since the last tax event.
That doesn’t work. Houses are already taxed to hell, even unrealized gains on a house is taxed. So triple taxing when you use a house as collateral would hurt small business owners.
But it’s not extra taxing, it’s just triggering a tax event so realized gain is taxed at that moment instead of some time in the future, which for the billionaires is never.
It is triple tax. You pay tax when you buy the house, you pay yearly tax of the unrealized gain of the increase in your property value. On top of that you want to add a tax when you use property as collateral so in this case a house which small business owners frequently do.
Everyone needs to pay their fair share of taxes. Get rid of deductions for corporations and people with revenue/earnings over a certain amount, say 500k. We need to stop complicating the tax code because that is why there are so many loopholes.
I’m in Canada, maybe it’s different. You pay sales tax on a new house when you buy it, just like any purchase. Theres also land transfer taxes an other fees. When it goes up in value and you sell, you pay capital gains (unless it’s your principal residence, and then there’s an exemption). But until you sell or some other tax event, you don’t pay any tax on its increased value until such a tax event happened. At that point it’s assessed and you owe any tax on the gain. So if a tax event triggers some tax owing (like if using it as collateral triggered this), then later when you sell, you wouldn’t pay on that gain again, only on any gain since the last tax event.