Not exactly - any home purchased as an investment and rented out would be tax free. The tax would become due when the home is converted to personal use. So the 30% tax could well be added to the cost of a used home, and not all new home sales would be taxed.
BTW, the renter would have to pay 30% tax on his rent.
Existing housing would go up in value as a result of the tax premium on new housing (thus benefiting current homeowners), but again, not by the full amount of the FairTax, so you end up with slightly higher home prices, which can be paid with higher incomes.
So the FairTax would be inflationary.
And medical expenses are taxed now, in the sense that they have embedded taxes built into them and they are paid (for the most part) with post-income and payroll tax dollars.
Those that provide medical services will cut their fees by the amount of income tax they would have paid the IRS?
...and they are paid (for the most part) with post-income and payroll tax dollars.
The employer gets a tax break for the portion of health insurance he provides, and the employee does not pay tax on that portion of the benefit. Under the FairTax, would employer provided and paid for health insurance be a business expense and tax free, even though the benificary is the individual? Would the portion of insurance paid for by the employee be subject to the 30% tax?
What happens when the insurance provider pays for health services? Is the payment a business expense and therefore not subject to the tax? If the insurance provider must pay an additional 30% in taxes on the behalf of the insured, what would that do to insurance rates?
The employer gets a tax break for the portion of health insurance he provides, and the employee does not pay tax on that portion of the benefit. Under the FairTax, would employer provided and paid for health insurance be a business expense and tax free, even though the benificary is the individual?From FairTax.org:
"The purchase of insurance by a business for its employees is taxable. The business owes the tax."So, yes, employers will pay the FairTax on their employee's health insurance..
Would the portion of insurance paid for by the employee be subject to the 30% tax?Yes.
What happens when the insurance provider pays for health services? Is the payment a business expense and therefore not subject to the tax?Yes. There is no tax charged. If the insured pays for the health service, they are charged the tax and they get a credit through the insurer.