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Author: 1HappyFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757464  
Subject: Re: Imputed Income Date: 12/11/2012 7:35 PM
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Own a home with a mortgage whose payment is less than what the house would rent for. The government could consider this difference to be taxable income. Even worse is the case where the house is owned free and clear. Heard this idea floated on a talk show this morning.

It would violate the constitution. The federal government can't tax assets, but it can tax transactions (egs. earned income, sales, inheritance, dividends). Not paying rent is not a transaction, so the proposed tax would be an ad valorum tax on assets, which is constitutionally reserved for the states.
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