[RayChuang88]

I think Hewitt forgot that the 23% tax rate is based on final sale of goods and services, NOT business-to-business taxation like you get with a value-added tax. In short, the ONLY place you collect this consumption tax is at the retail level, and sales of used items are not subject to this tax either. Since 75% of all home sales are old homes anyway, this right there means under FairTax whole neighborhoods of foreclosed homes will be sold in a blink of an eye as people discover they are 23% cheaper than a new-build home!

[Wissa]

this right there means under FairTax whole neighborhoods of foreclosed homes will be sold in a blink of an eye as people discover they are 23% cheaper than a new-build home!

I'd bet that foreclosed houses are already selling at more than 23% cheaper than new homes. You'll just make new homes be even more overpriced (on a reletive basis) and ensure that the construction industry stays down indefinitely.