[savingsPossible]

not rental tax. Rental tax on the house you own, if you live in it

At least according to phind

https://www.phind.com/search/cmg40zr9i00002a6lqddmuyxt

I suppose that would count as a progressive tax (as opposed to regressive, like VAT)

[tomp]

It’s actually “imputed rental value tax”.

The point is fairness, not progressiveness.

The idea is, if you live in your own house, you’re no better off than if you lived in another property and rented out your property, and paid the tax on the rent you get.

It’s supposed to reduce friction / bias in the market (though you could also obviously argue the reverse).

[RhysU]

Suppose you buy bread, meat, and cheese and pay sales tax for each of them. You make a sandwich. You eat the sandwich.

Do you now owe the government the difference in sales tax on the market price of a pre-assembled sandwich versus on the market price of the individual bread, meat, and cheese?

Is it "fair" to owe the government the incremental sandwich sales tax? Should someone who can buy separate bread, meat, and cheese ingredients get such marginal sales tax benefits relative to someone who only can buy pre-made sandwiches? Or does owning the bread, meat, and cheese mean that whatever marginal value you extract from the ingredients' use is fully yours?

Supporting imputed rent seems consistent with supporting my hypothetical sandwich marginal sales tax. It's ridiculous.

[foogazi]

So everyone is a permanent renter ?