Just from my small brain viewpoint, the owner hasn’t sold the house or anything, so they shouldn’t be taxed, and rent income is already taxed, so if they’re using it to rent, this might trickle down to increase rent costs. Although, on the other hand. This only affects the ultra rich, so maybe they have it coming to them.
To expand your analogy to the house on how the rich used their unrealised gains.
You buy a house and it appreciates in value. You bowwow money against the capital gains and use that to live on. Your house price goes up further, generating more capital gains that you can now bowwow against to pay back your previous loan.
edit: also since you’re so filthy rich the banks give you really low interest rates, way less than tax would have been.
The Unrealized Tax is a bit iffy though. Not sure I entirely agree with it.
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Just from my small brain viewpoint, the owner hasn’t sold the house or anything, so they shouldn’t be taxed, and rent income is already taxed, so if they’re using it to rent, this might trickle down to increase rent costs. Although, on the other hand. This only affects the ultra rich, so maybe they have it coming to them.
To expand your analogy to the house on how the rich used their unrealised gains.
You buy a house and it appreciates in value. You bowwow money against the capital gains and use that to live on. Your house price goes up further, generating more capital gains that you can now bowwow against to pay back your previous loan.
edit: also since you’re so filthy rich the banks give you really low interest rates, way less than tax would have been.
deleted by creator