"... legislators cannot invent too many devices for subdividing property, only taking care to let their subdivisions go hand in hand with the natural affections of the human mind. The descent of property of every kind therefore to all the children,...But it is not too soon to provide by every possible means that as few as possible shall be without a little portion of land. The small landholders are the most precious part of a state."
-- Thomas Jefferson to James Madison, Oct. 28, 1785 -- PROPERTY AND NATURAL RIGHT
That doesn't do much for the buyer either. The buyer just paid $200,000 for a home worth only $154,000. Now what about the tax paid? is it included in the down, or is it amortized in the loan, paying interest on the tax?...Don't forget, under the phony national sales tax, interest paid as well as interest earned is subject to the sales tax...interest is the price we pay for borrowing buying money and nothing is exempt in their scam.....
The sales tax shills claim their sales tax is good for homebuilders....How is paying $200,000 for a $154,000 home good for a home builder when home buyers could actually get a $200,000 existing home worth $200,000 sans their idiotic sales taxes?
Still playing rich man against poor man aren't you Willy.
You do know of course, that investors are home buyers and renters too, don't you?
Why don't you mention:
These factors more than overcomes any imagined advantage of investor over the homebuyer so that all homebuyers can become an investors too.
But then good socialists never consider becoming investors themselves now do they W.G
To resurrect a ghost that should always haunt you everytime you paste your piece of illogic and trash:
Still quoting that same lie huh, Willie? This time, put on your c-o-m-p-r-e-h-e-n-s-i-o-n cap. Homebuilders Will Reduce Costs and Increase Profits
The Demand For New Homes Will Increase
Interest Rates Will Drop
Homeownership Under the FairTax Will Be More Affordable
Homebuilders' Compliance Costs will be lower:
1 Compliance Costs of Alternative Tax Systems II, Arthur P. Hall, Ph.D., Senior Economist, The Tax Foundation, Special Brief, House Ways & Means Committee Testimony, March 1996. 2 The Economic Impact of Taxing Consumption, Dale W. Jorgenson, Ph.D., Harvard University, Testimony before the Ways and Means Committee, March 27, 1996. 3 Ibid. The Economic Impact of Replacing Federal Income Taxes with a Sales Tax, Laurence J. Kotlikoff, April 15, 1993, Cato Institute Policy Analysis. 4 Looking Back to Move Forward: What Tax Policy Costs Americans and the Economy, Gary Robbins, Aldona Robbins, Policy Report No. 127, September 1994, Taxation Analysis, The Institute for Policy Innovation. 5 Effect of a Consumption Tax on the Rate of Interest, Dr. Martin Feldstein, Ph.D., Working Paper 5397, December 1995. The Flat Tax, 2nd Edition 1995, Robert E. Hall and Alvin Rabushka, The Hoover Institution Press. Hardly a disadvantage for homeowners. |
- Landlord/investors enjoy a 23% discount compared to the individual personal home buyer.
- Individual personal home buyers must pay 29.87% more than landlord/investors.
This a significant inequity between individuals trying to buy their own new homes and landord/investors looking to buy the same single family dwelling as a rental investment.
Now, lets take a look at your specifics and see how they hold up:
A typical family purchasing their own new house today has 25% or more of their gross income extracted by the Federal government before they even think about buying a new or even an older house. That is not even counting the tax costs and costs of compliance placed on businesses of an additional 20 to 30% and embedded in the price of the new house.
Of course that landlord/investor also pays the same tax on the house he lives in or rents before he can ever become an "investor/landlord" in the first place. Or do you figure such folks live in NY allies and sleep on park benches.
Additionally, a buyer of an older home, is not charged the NRST, which is the case of most first time buyers of homes.
Actually not, as the Landlord/invester pays the 23% tax on the home he lives in whether rented or purchased, the same manner as any other individual.
Again untrue, the landlord/investor pays the same tax on the home he rents or buys new for his personal use. All individuals are treated the same under the NRST. Infact, because the individual receives the full benefit and control of his gross income, as opposed to merely after tax income under the current system. That plus the NRST prebate paid to ALL households provides an enhanced opportunity for everyone to become investors.
Under the current Income/Payroll tax system, the total contribution of the federal tax system(including taxes in gross wage/salaries) to the price of retail consumption goods and services is 36% for taxes alone. Including cost of compliance at around $600billion/year, increases that percentage to about a 47% total burden with respect to current family consumption expenditure caused by the federal tax system as it exists today.
I'll be happy to pay 23% of the total payment for new goods and services, or as you would put it (30% added on) to the tax free price any day. Considering that I have available my full gross pay from which to accrue tax free growth of my savings and investments.
Compared to what we are hit with now:
We must . . . End Tax Slavery Now; Nov '97
by Jarret B. Wollstein
HOW MUCH DO YOU REALLY PAY?
According to the Tax Foundation, in 1994 the average American paid 22.4% of his or her income in federal taxes, plus 11.8% in state and local taxes - 34.2% total.
But that's just the beginning! Dr. James Payne of the University of California found that in addition to direct taxes we also pay huge, hidden taxes including:
- Compliance costs - record keeping, monies spent on tax planning, computers and software purchased to fulfill IRS requirements, etc.
- Enforcement costs - IRS audits, field investigations, service center corrections, criminal investigations, litigation, and forced collections.
- Emotional, moral and cultural costs - families forced onto welfare, time and creative energy lost figuring out how to avoid taxes, etc.
For every $1 we pay in direct taxes, we spend an additional $0.65 in compliance costs. And even that figure doesn't include the cost of import duties, license fees and other government regulations. For a typical U.S. family, the real cost of taxes and regulations is at least:
Federal taxes 22.4% of income
State & local taxes 11.8%
Compliance costs 22.2%
Regulatory costs 12.7%70.1% of your income is now consumed by government