There are numerous things to make this proposal reasonable.
Count as income depending on amount of loan, nature of collateral, and usage of the loaned money.
A loan taken out against primary residence used for purchase of same residence under a million dollars? Not applicable. Proceeds used for education, within reasonable limits? Not applicable.
When a loan is taxed as income, provide for tax credits upon repayment reconcile ultimate use of “real” income. That way you avoid the “double tax” compliant they keep whining about.
I find the tax loans approach ultimately the most workable approach to close the loopholes.
There are numerous things to make this proposal reasonable.
Count as income depending on amount of loan, nature of collateral, and usage of the loaned money.
A loan taken out against primary residence used for purchase of same residence under a million dollars? Not applicable. Proceeds used for education, within reasonable limits? Not applicable.
When a loan is taxed as income, provide for tax credits upon repayment reconcile ultimate use of “real” income. That way you avoid the “double tax” compliant they keep whining about.
I find the tax loans approach ultimately the most workable approach to close the loopholes.