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It's simply a fairer way of taxation. Suppose that you own a house that you rent out and live in another house for rent. Then you obviously have to pay taxes on
by nwellnhof 7y ago
It's simply a fairer way of taxation. Suppose that you own a house that you rent out and live in another house for rent. Then you obviously have to pay taxes on rental income. If you live in a house that you own, you don't have to pay taxes in most countries, although your financial situation is basically the same.
- mantap 7y agoIt makes sense as a way of taxing a secondary residence, but for a primary residence it makes no sense. What if you are old, or disabled, or unemployed? Are you forced to sell your house to pay this tax?
- yorwba 7y agoYou could also rent it to someone other than yourself, pay your taxes on that income and use the profit to pay for a cheaper accomodation. That does mean you can't use your own home as a safety for when you're old and poor, but that doesn't necessarily make the tax bad. It just means you have to change strategies and invest your money productively. In practice I'd expect the number of people who suddenly find themselves unable to afford even just the tax on what they'd have to pay to rent their own property to be quite small.