I guess I'm not sure how this mechanism would work without being abused. I assumed when I take out a car loan, the bank is giving me money, in which the collate

I guess I'm not sure how this mechanism would work without being abused. I assumed when I take out a car loan, the bank is giving me money, in which the collateral is the car or home. But I now assume the tax would be on the assessed change value of the asset, for which a new car or home would be 0, so no tax.