[n-tres-ted]

The biggest stunner was the discovery that the Fair Tax taxes interest above the Fed Rate on mortgages, credit cards, etc. What is the source for this? I believe it is a false statement, and I have read the legislation. In fact, interest income is untaxed by the Fair Tax, which is why interest rates are projected to decline by about 25% (to tax exempt rates) when the Fair Tax is enacted.

[n-tres-ted]

ancient_geezer; Bigun; Principled; groanup; pigdog

[cgbg]

The source for the info was the Tax Prof on CSPAN last night. He was not talking about interest income. He was talking about the payment of interest as being subject to a sales tax if it was above the Fed rate.

[groanup]

This part of the legislation is ambiguous and needs to be re-written. I believe what it is trying to say is that such things as "points" and fees are taxed to the earner. So when you close a mortgage the points are taxed to the mortagage company that earns them.