I had seen this before but when I read it again, the only thoughts I have is “Is this my house or the Government’s?” and “At what point does Government’s stash no longer needs more of my [much diminished] stash?” when looking at “tax loophole” that I take advantage of when I, well, live in my home :
…to the technocrats in the federal government, the tax you don’t have to pay on the value of rent you don’t have to pay because you own your home is a loophole. Read that last sentence again. Its called “The Imputed Net Rental Income on Owner-Occupied Housing” and the feds include it in their annual list of “tax expenditures.” That term is how Washington officially refers to credits, deductions and exemptions. Here’s how the federal government describes it:
Under the baseline tax system, the taxable income of a taxpayer who is an owner-occupant would include the implicit value of gross rental income on housing services earned on the investment in owner-occupied housing and would allow a deduction for expenses, such as interest, depreciation, property taxes, and other costs, associated with earning such rental income. In contrast, the Tax Code allows an exclusion from taxable income for the implicit gross rental income on housing ser- vices, while in certain circumstances allows a deduction for some costs associated with such income, such as for mortgage interest and property taxes.
Let’s say you own a home and your mortgage is $1,000 a month. If, however, you instead rented the home from a landlord your rent, let’s say, would be $2,000 a month. To the mandarins at the IRS, you are “earning” an implied $1,000 a month because you own and not rent, and that “value” should be added to your taxable income. If you own your home out-right and don’t have a mortgage at all, you would be “earning” $2,000 a month which the IRS thinks should be added to your taxable income.
When the feds consider money I don’t have to pay because of a choice I made as a taxable event, then the leviathan is truly all-consuming. Oh, and the feds list this exemption as one of the top “loopholes” in the tax code.
How often do you hear that tax cuts “cost” the Government needed revenue by Statists? You should be listening because it shows an outlook that Government should have the “first fruits” of you your labor for its needs – before your own family’s needs. We will be hearing more of this as the Government’s inability to live within its means continues apace.
And of course, by coming up with more and more ways to find more ways to “enhance revenues” (mostly at the behest of Progressives), how is this any different than what corporations are accused of doing (mostly by the screams of Progressives)?
The Bigger the Government, the smaller the citizen