Matt Mahan

And then your income is effectively borrowed money at a low rate.

And if you're deploying that money and getting a return on it, you can pay the interest quite easily.

Yeah.

So it's essentially a hack of the tax code.

That's where I would go.

I mean, that is a very logical, if you want to make the tax code fairer, I would start there.

think that there should be a threshold.

And again, I'm not an accountant, so there may be folks smarter than me who have a better proposal, but it just intuitively feels to me that at some point, if there's a level of borrowing against a certain amount of appreciated but unrealized assets that you hold that should trigger a capital gain or basically they should effectively be considered realized.

You are realizing that capital gain without

that being true for an actual legal or tax purpose, I believe you could regulate that to say at some point of borrowing or some time duration, that is now a realized capital gain and you need to pay the tax on it.

But I think we have to offer people a better description of what's going on.

And I think it is more true that our inability to deliver high quality public services, the extent to which we've gotten in the way of building housing.

I mean, you think about it, most people's both their income, an increasing share of income is going to just the most basic thing being housed.

More and more people are renters.

We can talk about that.

That's kind of an interesting quirk of regulation and construction defect liability in California, a little bit of special interest capture.

And most people's wealth is in their homes, but that's increasingly only true for older generations.

You have an entire generation of young people, particularly in California, who

have become almost radicalized around the fact that they have no hope of becoming homeowners and having any equity in our society.

I would focus on solving that.