Because I think many of your arguements are dishonest. I see this as a big entitlement, although I understand the politics and the reasoning. I think fairtaxers economic bliss predictions are based on demonstratably bad analysis. The real area the fairtax is better than the income tax is in the area of exports. It will significantly reduce the costs of our exports. I think most of the other claims are bunk or at the very least exagerations. Besides, I have disclosed my true motivation numerous times. It is no secret that I am a home builder.
Great - then let's talk about those - that would make us all smarter. But being dishonest because you believe others are is childish.
Significantly? How's that?
No, you hadn't. You'd been making up dumb stuff for some still unexplained reason.
It is no secret that I am a home builder.
No, none at all. But that we know you're a home builder does not indicate your "real" motivation for posting such foolishness.
Actually, home builders are one group likely to benefit. Suppose that the FT whizzed through congress and passed with a start date of Jan. 1, 2007. People contemplating big-ticket purchases will go into a buying frenzy in 2006 to beat the tax. Anyone thinking of building a home will quickly seal a contract with you in 2006, in order to be grandfathered at the old tax rates.
You can probably build around a half-dozen homes per year per crew. So you'll have a waiting list on the order of ten years long. Thus, to a first-order approximation, you'll have all the business you can handle up until you retire.
Second-order effects will kick in, of course. Congress will be utterly surprised by the Feeding Frenzy of 2006(tm), and will pass a new law that contracts executed under the FairTax are subject to it. They will make an exception, however, if you break ground in 2006. As a result, you'll order all your crews to do nothing but lay foundations, and you'll double or triple on manpower to lay hundreds of foundations in a single year.
For you, that will be an incredible windfall. In 2006 you'll collect hundreds of down payments, plus payment for hundreds of completed foundations, which will come at high rates due to the high demand for skilled labor and concrete. In addition, you'll be booked solid for ten years or more into the future. Even clients who later renege will forfeit at least their down payments.
In the end, the real estate bubble will not only collapse, it will implode, due to the incredible oversupply of new houses. Old houses will be impossible to sell. But it's quite probable that you for one will come out smelling like a rose.