"The problem is that drastically depreciates the value of current homes. That means for people like me, for whom their house is their largest investment, we take a HUGE hit."
Not true. If you bought a house jus before the FairTax and paid $250K for it, and your friend bought one across the street after the FairTax was implemented, he woul pay about $250K after tax. EIther house would sell for about the same several years later, probably $250K + appreciation.
"Not true. If you bought a house jus before the FairTax and paid $250K for it, and your friend bought one across the street after the FairTax was implemented, he woul pay about $250K after tax. EIther house would sell for about the same several years later, probably $250K + appreciation."
You're missing the point.
If I buy a house today for $250,000. And someone buys an Identical house after the fair tax he will pay $250,000 including the tax.
Then I have to move, so I sell my house. I receive $250,000 minus the federal tax for a net amount of $192,500 and not only lose all my equity, I can't even pay off my mortgage.
Or will the federal government only tax new construction, and real estate won't be taxed again when sold after the first time?