Of course you are - if you think that they'll pass along any savings out of the goodness of their hearts! But that's not the case - they'll have to pass the savings along (in any competitive industry) to survive.
And your explanation doesn't answer the amortizing the 23-30% tax on a new house. A person would pay 3,4+ times the tax over a 30 yr. period.
Why would they pay more than now??? Today's prices include fed tax and tax costs amounting to 25% or so of the total price. The same will be true under an nrst. No difference in the amount of tax paid at home purchase, but big difference in whether you see 25% of the price as tax. Now, you clearly do not - hence your misunderstanding of this point. Under the nrst, it must be itemized on eery receipt "Federal Tax 23%". A home today that costs $100,000 already has about $25,000 of fed tax and tax costs in the price. Without those taxes, the home would be $75,000. Under the nrst, those fed tax and tax costs are eliminated, then prices fall because housing is a competitive industry, then add the nrst and the price is back to $100,000. No change.
The one thing I find attractive is that many people that now pay no tax would pay some, or would they?
Yes. Like a pizza party with 18 people costing $90. Our current situation is like the pizza party with 9 of the people paying. That would be $10 each (for those paying). Of course those that don't pay wouldn't like to reform the pizza party paying plans. But if they ALL paid each could pay $5.
What with some sort of 'rebate' check from the gov every month.
Yes the rebate goes to any US resident with a valid SSN who wants it. Analogous to today's standard deduction, it exempts a certain level of spending from taxes.
This has the net effect of reducing marginal rates on those who spend less. But everyone would still have to pull green money out of their pockets at purchase time - they'd feel the pain of taxes still.
Roth IRAs. Well under today's system the withdrawals are tax free until you spend them - at which time 25% of the price is actually fed tax and tax costs. Under the nrst, EVERYTHING is a roth - and you pay 23% of prices as fed tax.
There's no more taxing roths under an nrst than now. Indeed, all savings grow tax free under the nrst - not just special roths...and there is no penalty for untimely withdrawal.
http://www.fairtaxvolunteer.org/smart/faq.html
With a Roth, you have already paid income tax on your contribution. If you then pay NSRT on purchases when you withdraw those funds, you are paying twice.
The standard IRA is tax exempt when you contribute and that wouldn't be a problem.