[Your Nightmare]

It's interesting to look at Kotlikoff's calculations of the FairTax base and see who would be paying the FairTax and how much. Take a look:

Consumption	Est. 2007 Spending	Est. 2007 FairTax
Purchase of New Homes	$ 394	$ 118
Improvements to Single-Family Homes	$ 176	$ 53
Brokers Commissions on Housing	$ 121	$ 36
Taxable Home Mortgage Interest	$ 128	$ 38
Taxable Personal Interest	$ 155	$ 46
Final consumption expenditures (non-wage) of non-profit institutions - Religious and welfare activities	$ 62	$ 19
Capital Spending by Non-Profits (net of capital)	$ 58	$ 17
State and Local Government Consumption Spending	$ 1,093	$ 326
Federal Government Government Consumption Spending	$ 916	$ 274

Note the $38 billion FairTax on mortgage interest and $36 billion FairTax on brokers commissions (so much for tax-free home purchases). Also note the $36 billion total FairTax on non-profits (I guess that ends that debate - pigdog loses another one).

[lewislynn]

Note the $38 billion FairTax on mortgage interest

And $46 billion ON personal interest (credit cards, car loans etc.)...so much for the 25% reduction in interest rates.