Quote:
Originally Posted by Ignignokt
That would be catastrophic. You would basically create a situation where people had to pay 22% more for a new house, thus creating a situation where there would be a HUGE disincentive to new home building.
And how do you even define "one time tax?" What about the 2x4s and paint and all the other supplies that go into building a home? I would assume those are taxed. Are you taxing them twice when you tax the new home? At what point does something become greater than the sum of its already-taxed parts so it is OK to tax again?
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You have to look at it this way. 20% of your check is getting wiped out already. So it just shifts the tax burden.
What you can do with the Fair Tax is save more money now. Instead of dumping 25% of your income to Fica and income taxes.
It would encourage ppl to save more. Just think if you rented first and all that money that used get taken away is now yours. And who knows, prices may fall as businesses have less overhead to deal with regarding taxes.