Posted on 01/31/2005 7:12:16 AM PST by bmweezer
Didn't it have something to do with Pete DuPont taxing library books?
(Genuinely baffled Smiley.)
-good times, G.J.P.(Jr.)
This just isn't true. Under the FairTax, you pay a sales tax on the portion of the interest above the Fed rates. And if you bought the home new you would be paying off the sales taxes on that home plus the interest required to finance your sales tax payment (plus the sales tax on that interest).one of the strong arguments (and I mean REALLY strong) for home ownership is the deductibility of your interest and real estate taxesOf course, under the NRST, not only are interest and real estate taxes paid with pre-tax money, so is the principal payment.
Bill Cullen is after me.
Yes, but interest will be lower -- as the lender does not need to make up for the costs of taxes in their ROI.As I said, after-tax interest won't be any lower.
I was referring to the post-New Year's celebratory thingie that was held at Kennedy's.
I just couldn't recall the actual name of the event.
Sorry for the confusion.
My earlier post dealt with the infamous vanity thread chronicling the events that took place that evening, complete with a rather unsavory photograph of Ms. Coulter, snapped by one of my FRiends.
Protectionist would be funding the Federal government largely with import tarrifs, making others pay for the priviledge to trade in our market.
What we have now is the exact oposite, it is protectionist for everyone else at our own expense. We fund the federal government by taxing our own production, whether they are to be sold domestically or abroad, all while allowing other countries to manufacture their goods outside the jurisdiction of our tax system, and give them access to our markets to sell their goods without their prices having to bear the federal tax burdens like our own products do.
The FairTax levels the playing field a bit, but I don't think you could call it protectionist except relative to our current system.
I was talking about the super bowl.
Bill Belichick grates on me.
True, however if you buy your home before it goes into effect, or buy a used home, your principle payments are not taxed, like they are under our current system.
True, however if you buy your home before it goes into effect, or buy a used home, your principle payments are not taxed, like they are under our current system.No, but your interest payments would.
Unfortunately, the NRST, while leveling the playing field, does so at a disadvantage to consumers.
That is not an explanation.
That is exactly how I am looking at it..
And in the example I gave, although just a personal anecdote, spending may very well INCREASE.
You are right. You shouldn't spend it now if you don't want to.
If our system continues as is, you will use the money that you have already paid tax on, to pay for goods that still have the imbedded costs of taxation built in -- 20 to 25%, right?
Next, you may have savings that you've already paid tax on, but many do not. People have been saving tax free for years, but in either case, the imbedded costs above cannot be ignored. You also have rules governing when you can take out YOUR money and when you can't without subjecting you to penalties.
With the FairTax, all of your savings will continue to grow tax free and when you spend it, it will not be paying the additional imbedded costs.
The FairTax also gets rid of the estate tax, gift taxes, inheritance taxes, etc. I hope (truly, I do) that you have a fortune put away. How much will those taxes take from you if we keep the present system? How much joy will you get if you can pass on some of that fortune (large or small) to your loved ones now when you can see them enjoy it?
You will also gain the freedom to control your own life and to pass that freedom, as well as your cash, on to your children and grandchildren.
Try to put a price on that legacy of freedom that you will be giving your children. You will be enabling them to build their own fortune -- tax free -- from an early age.
I don't want this to cost you a bundle of money and I don't believe that it will in the long term when you consider the effect of all of the other taxes that we are faced with now. But even if it costs some cash, I ask you to look at the non cash benefits that this proposal brings to the country as a whole and to our posterity.
Many of our fellow citizens have died to pass on a legacy of freedom that we have squandered. We can restore that legacy without bloodshed, without anyone dying for it. It may cost you some money. Maybe not as much as you think. I ask you to consider the benefits as well as the cost.
"Keep reading, my FRiend.......keep reading.
You'll see where I was coming from and where I am at now!!!!"
That's the problem with getting only about 20 minutes breathing time in my day.....I don't get to see the whole thread! I look forward to the upcoming posts.
I understand that perception, but I also percieve that it will boost American industy's competitiveness, which means more money goes back to American wage earners, instead of financing Chinese economic expansion and putting American industry out of busniess.
I would think that making the tax visible makes increasing taxes more difficult. But that is just me, the ever diligent persuer of knowledge and the teacher of the masses.........
I gotta go, but I hope to read this entire thread soon.
I'm assuming the interest payments would be taxed under the FairTax. And the principle of a new home purchase would be taxed as well. But if I already own a home, and the FairTax is implemented, I would not be charged sales tax on my principle payment. Also, the principle on a used home purchase would not be subject to the FairTax.
I would rather pay tax on the interest than on the principle.
I'm sorry. Your post makes no sense.
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