[RobFromGa]

nobody pays the marginal rate. I will pay 17%.

When you buy the $460k house ($500k now) you will pay the full FairTax rate and you will have to borrow enough money to pay for the house and the FairTax together. Since for most people the purchase of a house is more than their annual income by a bit, so your comments about 17% effective FairTax are even more bogus than they normally are.

With a 41.8% FairTax rate, the $460k home will be $649.5k

[Principled]

Uhm, the number of people who pay cash for homes is negligible. Under the income tax, to make a $1000 house payment, I'd need to earn $1333.

Under the nrst, I'd need at MOST $1200.

My nrst effective rate is likely to be lower than 17%. I assume in that calculation that I spend 100% of my earnings on taxables. I don't.