Everyone pays taxes on the principle part - but not the interest part. Don't see why that's news to anybody.
How do you figure everyone pays taxes on the principal part? The loan balance is taxable? That would be news to everyone. Maybe you should elaborate with an example. Here's mine: you take out a business loan (or home mortgage) for $250k and pay interest of $10k for the tax year.....you can potentially deduct the $10k in interest you paid but are NOT taxed on the $250k. Are you talking about something else?
