[phil_will1]

"Does anyone know if this Fair Tax would tax securities and investments?"

No, its a tax on new goods and services purchased for consumption only.

[lewislynn]

"Does anyone know if this Fair Tax would tax securities and investments?"

No, its a tax on new goods and services purchased for consumption only.

Bullshit.

From HR25:

`SEC. 801. DETERMINATION OF FINANCIAL INTERMEDIATION SERVICES AMOUNT.

`(a) FINANCIAL INTERMEDIATION SERVICES- For purposes of this subtitle--

`(1) IN GENERAL- The term `financial intermediation services' means the sum of--

`(A) explicitly charged fees for financial intermediation services, and

`(B) implicitly charged fees for financial intermediation services.

`(2) EXPLICITLY CHARGED FEES FOR FINANCIAL INTERMEDIATION SERVICES- The term `explicitly charged fees for financial intermediation services' includes--

`(A) brokerage fees;

`(B) explicitly stated banking, loan origination, processing, documentation, credit check fees, or other similar fees;

`(C) safe-deposit box fees;

`(D) insurance premiums, to the extent such premiums are not allocable to the investment account of the underlying insurance policy;

`(E) trustees' fees; and

`(F) other financial services fees (including mutual fund management, sales, and exit fees).

`(3) IMPLICITLY CHARGED FEES FOR FINANCIAL INTERMEDIATION SERVICES-

`(A) IN GENERAL- The term `implicitly charged fees for financial intermediation services' includes the gross imputed amount in relation to any underlying interest-bearing investment, account, or debt.

`(B) GROSS IMPUTED AMOUNT- For purposes of subparagraph (A), the term `gross imputed amount' means--

`(i) with respect to any underlying interest-bearing investment or account, the product of--

`(I) the excess (if any) of the basic interest rate (as defined in section 805) over the rate paid on such investment; and

`(II) the amount of the investment or account; and

`(ii) with respect to any underlying interest-bearing debt, the product of--

`(I) the excess (if any) of the rate paid on such debt over the basic interest rate (as defined in section 805); and

`(II) the amount of the debt.

`(b) SELLER OF FINANCIAL INTERMEDIATION SERVICES- For purposes of section 103(a), the seller of financial intermediation services shall be--

`(1) in the case of explicitly charged fees for financial intermediation services, the seller shall be the person who receives the gross payments for the charged financial intermediation services;

`(2) in the case of implicitly charged fees for financial intermediation services with respect to any underlying interest-bearing investment or account, the person making the interest payments on the interest-bearing investment or account; and

`(3) in the case of implicitly charged fees for financial intermediation services with respect to any interest-bearing debt, the person receiving the interest payments on the interest-bearing debt.