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Even with your rose-colored glasses (or is that Magical Mystery Tour) view that the $300K house would go down to $273K, after the FairTax this grosses up to $354,900, so how do you get to buy it for $321,176? Is that your broken calculator at work?

Do you think that the FairTax would be paid at closing? I do. And I doubt that the mortgage company would be willing to cover that, as they want the owner to put in some actual equity in the house.

If the FairTax ever passes, after a few short years of experience, taxpayers will be clamoring for the old income tax, or flat tax.

Before screwing up the entire country with this pie-in-the-sky tax scheme, try it out in some pilot state, see what happens in real life, rather than your pipe dream. I'll bet there would be a ~~victim~~ volunteer state. See if the population moves out, or moves in. See if economic activity increases, or becomes seriously gummed up. See the disappearing tax base.

What, you say people will go to a black market (or a neighboring state - even though made illegal) to buy stuff? Of course they will - just what would happen if this travesty were to be enacted for the entire US. And it would grow a whole new mob enterprise, much bigger than booze or drugs - and everybody but a few goody two shoes would participate. Perfect use for the new trans-US highway.

What you are grossly overlooking is the big picture in taxation. Under an income tax you only are left with 25% of the fruits of your labors. How does one buy a house with only 75% of one's income?

Under a NRST you keep all of your income. How does one buy a house that has a 23% sales tax?

YOUR PURCHASING POWER STAYS THE SAME EVEN UNDER THE MOST CONSERVATIVE ANALYSIS. Under every situation that you can imagine, there is probably an increase in purchasing power under a NRST. This isn't rocket science. You are still in the same boat after a NRST as before. Your objections are not valid.

I make: 100,000 dollars.

I pay: 25,000 dollars in taxes.

I have left: 75,000 dollars.

UNDER A NRST:

I make 100,000 dollars.

I know I will have to pay a sales tax on all items above the basics.

So my 100,000 dollars only has the purchasing power of 75,000 dollars.

How does that diminish my ability to buy a house - or anything - for that matter?

...the $300K house would go down to $273K, after the FairTax this grosses up to $354,900, so how do you get to buy it for $321,176?

I don't have to earn but 321,176 in order to buy the house. My effective tax rate is 15%. If I earn 321,176 AND pay my 15% tax, I'm left with 273,000. Magical to you, simple to most.

Do you think that the FairTax would be paid at closing?

Yes. It will be financed like any other cost. Just like today's tax costs - they're financed in the mortgage.

try it out in some pilot state,

You mean like the states that fund themselves from sales taxes already? Texas and Florida come to mind... two of the mightiest economies around.

It is preposterous for you to pretend you're ignorant of the effects of the income tax on earnings. Why would you pretend so?

An item with $100 price tag costs me $133 (I have a 25% effective fed tax rate) due to the costs you ignore.

You are actually putting forth that the nrst will reduce purchasing power but that the income tax doesn't. That's not very good.