Basically (and I’m not an expert here), the Uber rich get tax free spending money without taking big taxable salaries by leveraging their assets for super low interest loans. Current tax codes don’t consider these loans as taxable income, but they’re being used for the same things us peasants use our income for. By considering these cash flows as taxable, billionaires wouldn’t be able to hide behind the “it’s net worth not liquid income” bullshit these use to dodge taxes.
Possibly this could be prevented by having floor and ceiling limits to this. Could even exclude mortgages if you remove corporate ownership and limit taxes to multiple mortgage situations.
Although honestly the simpler the rules the better for everyone. So maybe some people get screwed in a couple areas but would still be way better off
Basically (and I’m not an expert here), the Uber rich get tax free spending money without taking big taxable salaries by leveraging their assets for super low interest loans. Current tax codes don’t consider these loans as taxable income, but they’re being used for the same things us peasants use our income for. By considering these cash flows as taxable, billionaires wouldn’t be able to hide behind the “it’s net worth not liquid income” bullshit these use to dodge taxes.
Would this mean we are taxed on the value of our houses should we have a mortgage on it.
Possibly this could be prevented by having floor and ceiling limits to this. Could even exclude mortgages if you remove corporate ownership and limit taxes to multiple mortgage situations.
Although honestly the simpler the rules the better for everyone. So maybe some people get screwed in a couple areas but would still be way better off