I woke up in the middle of the night annoyed at, of all things, a dream about taxes. Who dreams about taxes!
A person buys a house for $500,000. The house is never improved. Ten years later, the house is worth $1,000,000. It is still the same house in the same condition when purchased. Why should it be worth more?
The price is higher because of inflation or devaluation of the dollar. $500,000 ten years ago is the same as $1,000,000 now.
If the house is sold, you are taxed on the gain. BUT THERE WAS NO GAIN. It's still the same house. The sale price of the house, after being adjusted for inflation or devaluation of currency, is still the same as the purchase price.
If there is no gain, why is government taxing us?
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