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To: pigdog; Always Right
Even the FairTax opponents have stipulated this would be a 9% savings making the house sell for earnings of $300,300 - NOT $404,561 (or even $330,000).
Income taxes don't determine home prices. Most labor in home construction is from independent contractors and they won't lower their prices with the removal of the income tax because they'll still have to pay the sales tax just like their (100% paycheck) employees would. Over half of the components in home construction is imported, steel, nails, bolts, copper, even lumber and plywood.

A home buyer today may or may not have to earn $404,561 for a $330,000 home, but one thing's for sure, they don't have to come up with the difference up front nor would they have to finance it for 30 yrs...and pay tax on the financing too.

608 posted on 09/07/2006 7:56:08 AM PDT by lewislynn (Fairtax = lies, hope, wishful thinking, conjecture and lack of logic.)
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To: lewislynn
Beg to differ. Income taxes certainly do help to determine home pices and boost them higher. All of the labor and materials used in the construcion of the home are taxed in some fashion under the income tax and that tax amount is paid by the home buyer either as a lump sum or via financing.

If financed under the FairTax, the mortgage rate will be a good bit lower as well, making home ownership much easier financially as well. But ehey would have to earn at least the $404,561 - more if financed since the mortgage rate would be higher. And there's no FairTax on the interest paid (e.g., no tax on the financing).

611 posted on 09/07/2006 8:09:22 AM PDT by pigdog
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