I build and sell new homes. It is not a promising future if I have to add a 30% sales tax on top of my price. If I could find anywhere close to even a 20% potential savings, it might work. But without my employees, my subcontractor employees, and my suppliers employees taking pay cuts, new homes will be at a major disadvantage competing against existing homes. I figure a new home will cost 20% more than an existing home. Of course the fairtax website makes other claims, but I know my numbers a heck of a lot better than some pointie-headed biased number cruncher that the fairtax people hire.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
Actually Rightie, there are plenty of used homes at present and it doesn't seem to have put you out of business ... nor will it in the future when folks can save up downpayments and get loans at much lower rates under the FairTax than with the present system.
There's no reason at all to think that the new/used housing spread will be any different after any adjustments due to the FairTax. There are always plenty of buyers who prefer new vs. old and the market will smooth out any differences.
And you're wrong - your costs will drop under the FairTax ... you just don't believe they will due to your anti-FairTax agenda. Most anti-FairTaxers adopt exactly the opposite argument and and say that used houses will skyrocket in value. Neither view is too likely and your "20% more expensive" argument for new homes doesn't hold water.
It's good to know you're not "pointie-headed", but you've made that obvious many times in your past posts.