The calculator correctly excludes from tax any EXISTING loan payments - they were established while loan rates/fees were still inflated by income tax costs and hence will not be taxed again. So anyone who has an existing mortgage will pay them without nrst.
New mortgages will have tax added to the excess portion of interest - and will come out about the same (tax costs are removed.... then added as an nrst).
The nominal price of the home will be higher, but it will cost me less in earnings....as has been demonstrated continually.
To buy a 300k house today (excluding interest), I have to earn 400k cuz i'm in a 25% tax bracket. Under the nrst, I'd have to earn 300k*.91=273k (removal of income tax costs), then pay my effective nrst of 15% and go from 273 to 321k; so I'll have to earn 321k.
Under the income tax, the house costs me 400k in earnings. Under the nrst, the house costs me 321k in eanrings.
Why do some continue to pretend that the income tax has no effect on purchasing power?
The tax calculator excludes all principle. It makes no distinction. Loan principle includes all sorts of things, just not housing. Cars, clothes, meals, housing, etc. During the transition, all goods bought under the old system did not have sales tax (because there was no fairtax yet), but as time goes by more and more of the principle will be goods with the fairtax. It is dishonest analysis to include principle as things that aren't taxed under the fairtax.
they were established while loan rates/fees were still inflated by income tax costs and hence will not be taxed again.In your dreams. The interest is what is taxed, you haven't paid the tax on the monthly interest due because it accrues with time.
It is quite conceivable that the price of the $300K house would go up. First off, it goes to $390K FT inclusive, right. Then because houses are sold in an auction market, and under your assumptions, income earners bidding against you in the market will have more $ in their pocket, the price will likely go higher. If some bidders make the same calculation as you, they might be willing to now pay $400K for the house that today sells for $300K. Or more if they previously were in a 32% tax bracket.
The seller will have a calculation as well. He looks around at similar houses, and wants to receive enough from the transaction so that he can buy at least equivalent - and then there is the huge tax to bear on his dream home. If he only nets $300K for a house people are willing to pay $400K for, he will not willingly sell at that price, he would like to net $400K. It may be that his economic decision would be to hold on to his house, and rent it out. Less supply, higher prices.
House prices go down under the "FairTax"! Ha, that's a good one.