I apologize I did not read all 400 + posts but how would this affect mortgages? If you were to buy a housw with this in effect would you add 23% to the price of the home or will homes be exempt?
I apologize I did not read all 400 + posts but how would this affect mortgages? If you were to buy a housw with this in effect would you add 23% to the price of the home or will homes be exempt?
Only new houses would be taxed, older residential property held before the implementation of the NRST, and any house up for resale after the NRST has been paid would be tax free.
The basic cost of building a new house would drop substantial as materials and service going into the construction would be tax free as business is no longer hit with federal taxes. Only final sale for use or consumption of property or services is taxable.
As far as mortgages go, the legislation provides for mechanisms to allow banks and financial institutions to create loans where any NRST would be folded into the a persons house payments.
More particular information can be found here ==>Homebuilder & buyers
If you were to buy a housw with this in effect would you add 23% to the price of the home or will homes be exempt?
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nothing will be exempt - but prices of homes will stay where they are today.
the basic deal is that the nrst does 2 things that everyone agrees on:
1 - it removes and eliminates all fed income tax, payroll taxes, and 90% of other costs relating to taxes ("comlpiance costs")
2 - it imposes a sales tax in place of the eliminated taxex.
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re #1, different papers show that prices we pay at the register are inflated by anywhere from 22-33% due to the tax costs (income, payroll, compliance) paid by businesses. this margin is invisible and many people don't even know it's there and that they're paying inflated prices because of fed taxes.
that brings us to #2, which both replaces the invisible tax and makes the fed tax we pay at the register visible.
that is it replaces invisible income tax, payroll tax, and compliance costs that are now in prices with a sales tax in prices of very nearly the same amount. there is agreement that the amount of invisible tax now varies somewhat depending on the number of steps of production to retail. generally that means big ticket items have more hidden income/payroll/compliance costs than smaller ticket items.
the net is that prices will stay about the same. the same amount of tax that is being eliminated from today's prices will appear as a sales tax in new nrst prices.
check this page- it is put together by the people who wrote the nrst but has good, short answers to lots of quesitons...i've learned a lot there - including what questions to ask...
http://www.fairtaxvolunteer.org/smart/faq.html see #28
and
http://www.fairtaxvolunteer.org/smart/industry_impact.html see Homebuilder
i'm sure there's more there, that's just what i've see so far. let me know if you what you find out! i'm interested...
The fraud in the sales tax begins with the rate itself. You don't "add 23%" you would add 29.87% (30%)
The 23% rate is "of the gross payment" (including itself)
$100.00 taxable plus fed. sales tax = $129.87 (gross payment)
.23 (of the gross payment) X $129.87 = $100.00
Your sales price on your house would be all the costs, fees etc. included in "the gross payment" X 30%...
$200,000 house would cost $260,000+
Did you notice how they avoid answering a simple question by writing an irrelevant essay? You think there's a reason for that?