[glorgau]

> No they arent selling it. They are securing a load (sic) with their property. Big difference.

The home owner is in effect “realizing” the (supposedly) increased value of their property. Once the property is put back into the economic realm, to be “fair”, it should be taxed at the recognized value.

Just my opinion.

And yes, the real answer is that less spending on the governments part would make the question moot.

[On the Road to Serfdom]

The homeowner is not realizing the gain unless the house is sold. For example take 2 cases: Homeowner 1 takes out a $20,000 home equity loan at 8% interest, homeowner 2 takes out a $20,000 loan on their credit card at 2% interest. Neither realized any gain in their home, they just took loans that must be repaid with interest independent of the future value of their home. Using a house as collateral does not realize (i.e. lock in) the gain.

[driftdiver]

“The home owner is in effect “realizing” the (supposedly) increased value of their property. Once the property is put back into the economic realm, to be “fair”, it should be taxed at the recognized value.”

Theres nothing fair about property taxes. Our govt wastes much of the money we give it.