For most families, the majority of their wealth is the equity in their house. In most states, we tax homeowners on the current unrealized value of their house,

For most families, the majority of their wealth is the equity in their house. In most states, we tax homeowners on the current unrealized value of their house, even if their mortgage makes them underwater. It is a de facto wealth tax. Here in Texas, we go further - all business are taxed on their non-financial assets , including inventory. This makes it so large farms and small factories are taxed on invested capital, and not just real estate.