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Nope. I've tried, but I just can't get past the initial down payment on the new home. If NRST is only going to impose tax on the new home, and not the used one, it just seems to me that the new home market will take a hit. However, there is a solution. Now, I know we are in no position to make changes to a proposed tax plan, after all, we didn't write it (although I wonder if maybe geez helped, given his outstanding knowledge of it. Just a joke geez, and a compliment at that) but what if the final point of sale was construed as the payment made on said purchase? What if the tax was applied to each payment made on the mortgage? Then the finance company doesn't have to cover it at closing, and the "owner" would pay the tax on each principle payment? This takes the burden off the initial purchase, removing liability from the finance company, and in the end the tax is only payed once... by the consumer, not the finance company. This also allows the tax to be imposed on used home sales, and reflects the end result of eliminating payroll taxes to the owner of the home without negative effects to the housing market. Geez?

I just can't get past the initial down payment on the new home. If NRST is only going to impose tax on the new home, and not the used one, it just seems to me that the new home market will take a hit.

If you can't get past the down payment of a $135K home with NRST, you can't get past the initial down payment on the new $135K home(with embedded taxes) now.

The point is the NRST is financed with the payment of the new home.

Today lenders won't finance an upfront tax (neglecting the fact that they actually finace all the income & payroll taxes embedded in that new home price, that is not an upfront tax on the closing or home per-se).

OTOH, under the NRST, the lender is made whole in the default situation, insofar as the NRST is concerned, and take on no risk as regards NRST thus will undertake financing the tax as well as the principal amount of the price of the home.

What if the tax was applied to each payment made on the mortgage?

In effect it is, as a consequence of being folded into the mortgage.

This also allows the tax to be imposed on used home sales,

No it doesn't, (tax once but only once rule). The NRST only taxes once to prevent cascading or compounding tax situations.

That would not prevent the seller of an older home from negotiating his selling price with intention of recovering his payment of NRST, anymore than it prevents that same person from negotiating price with intention of recovering costs & along with the embedded taxes in the original price paid today. Remember, $135K with embedded tax burdens of the current system, is still the same total payment as $135K with NRST included. Same house, same total payment, same financing (except the mortgage rate under NRST would be somewhat lower)