So next time I go to a garage sale or flea market can I expect a tax bill from the state on the "assumed value" of the used items, etc. that I purchase? Sounds like a greasy slide toward a pile of ....
Just wait until you get taxed on the "imputed income" from living in your own house. Some politicians cooked up the idea that the fair rental value of your home is taxable even if you are living in it. They figure you are depriving the state of tax revenue by sitting on an asset that could be generating taxable income. They reason that you are getting a benefit by not have to pay that rent yourself for living in that dwelling (even though you are the owner and landlord). This is, of course, omitting any revenues from property taxes that they also assess.