[vel0city]

> Paying off a loan is spending.

Talk about "double taxation" and wealthy being able to avoid taxes. I need a loan to buy a car. Taxes at the purchase, taxes as I pay back the loan. I take out a mortgage. Taxes on the sale, taxes on the mortgage payment. Meanwhile someone able to drop several hundred thousand in cash pay taxes once.

[scotty79]

Paying back a loan is spending but taking a loan is income and taken as individual might award you tax credit.

But yes, if you use a service, you pay for tax. Even a service of renting some capital.

Again, as a poor person you can get tax credits on your income or just because you are alive that offsets that if the government thinks poor people buying things with loans is societally beneficial or not. Today government does this by raising or lowering the rates which affect so many other things in the economy.

Fine grained control is better.

And what's wrong with double taxation? If you earn money today, you pay income tax, and use it to buy fuel then you also pay VAT and excuse tax. That's triple tax on the same money. Spend your money in societally undesired ways and you are getting it taxed multiple times even today. But just with a myriad opaque systems that don't play nice with each other and are full of loopholes.