[zorak8me]

It functions like income when they treat it like an average person treats their income. Spending on their home, their car, travel, etc. They’re using the loan to avoid taking income or realizing gains.

But yeah, I would be down for a more sensible sales tax situation. I’m sure there are a hundred ways to skin this cat.

Edit: ways

[Dracophoenix]

How is that any different than paying with a credit card or using reward points? Those aren't taxable or treated like income so why should loans and mortgages be?

[cheriot]

The difference is what secures the loan:

- credit card: nothing

- mortgage: the house

- car loan: the car

One could make rules about loans secured by assets with unrealized gains (with an exemption for a primary residence).

PS Credit card reward points are taxed as interest income in the US so look for a 1099 INT.