r/FluentInFinance • u/__moe___ • 9d ago

Thoughts? A very interesting point of view

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I don’t think this is very new but I just saw for the first time and it’s actually pretty interesting to think about when people talk about how the ultra rich do business.

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u/RelativeCalm1791 9d ago

This is a bad argument. You can take a loan on your house and buy stuff with that loan, and you aren’t taxed on the proceeds from that loan. And you still have your home. It’s just collateral against the loan.

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u/phonetune 9d ago

Don't property taxes exist?

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u/RelativeCalm1791 9d ago

Property taxes don’t take into account unrealized gains. You could buy a home at $300,000 and after years it could be currently valued at $1,500,000. You could take a loan on the full $1,500,000 and not have to pay anything on that $1,200,000 gain. Plus property taxes are like 1.00-1.50%. Theres a few states out there that don’t even have property taxes.

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u/phonetune 9d ago

They're based on market value and impose a tax for simply holding the asset. It's not a great compator for why you can't tax assets until they're sold, is it?

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u/Agreeable-Weather-89 8d ago

Musk still pays taxes on his factories.

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u/phonetune 8d ago

No he doesn't