| Dear Letters Editor: Many liberal economists want to tax you on benefits that you provide to yourself. This "imputed income" generally refers to benefits you provide to yourself that you otherwise would have to pay for. It isn't simple "income" because it isn't received as compensation for goods or services. The classic example is living in your own house. If you own a house unencumbered by a mortgage and use it as your primary residence, then you don't pay any rent. You have the benefit of living in a house without the expense of paying rent. So you have imputed income equal to the fair market rental value of your house. There are those who would tax you on that benefit! They point out that employees who are given rent-free off-premises housing by their employers must pay tax on that benefit, and renters must pay tax on the income used to pay rent. It would only be fair, they argue, to tax you on the benefit of living rent-free in your own house! End the theft. Vote Libertarian. [Derived from article written by by Ian Foster, ian@americanpartisan.com entitled "Impute This!".] |
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