mortgages are funded by appraised value
Appraised values for real estate are almost always based on market value.
would the 30% tax on a new home increase the appraised value 30% on day one of the purchase?
Your question is better worded 'would the NRST increase the market value by the amount of the NRST?' The answer is yes just as the present day income taxes are embedded into the cost of labor and materials increase the market value.
What if you sold the USED home before the mortgage was paid? The tax on the full amount has already been disbursed and you still owe the lender the balance, any savvy home buyer can see they'd be upside down for a lot of years to come because of the Fairtax.
This question shows poor understanding of financing and market valuations. A used home has a market value which means the price that a seller and a buyer agree on. Just as homes under the 'Income' tax have embedded taxes in their valuation, the FairTax will also be included in a home valuation based on market. Every realtor will understand that a home market value includes all costs and taxes whether those taxes were in the form of an 'Income' tax or a FairTax.
The FairTax replaces the 'Income' tax. The 'Income' tax is already in the price of homes sold. The FairTax merely brings it out in the open and puts it up front.
There is no avoiding taxes with the FairTax. What the FairTax gets rid of is the KGB IRS, it rids this abomination out of the lives of Americans. It also puts the level of tax front and center so that everything is known. Some politicians and government hacks don't like the stink of taxes out in the open where everything can be seen. So as the FairTax replaces the Income tax, some politicians are going to object because it makes getting bribes for tax legislation much more difficult.
The reason the FairTax is possible now and not a hundred years ago is because of technology. For a brief historical context see Post #117 of this thread:
http://www.freerepublic.com/focus/f-news/1831865/posts?page=117#117
Black market purchases, unreported foreign purchases, non-reported register purchases, privately contracted goods and services not reported. Actually, there is a huge opportunity to avoid taxes under the fairtax, which is why there will need to be a huge gestopo-like agency under the fairtax whether their supporters think so or not.
Your comments and questions are poorly worded and misleading.Which parts did you not understand?
This question shows poor understanding of financing and market valuations. A used home has a market value which means the price that a seller and a buyer agree on. Just as homes under the 'Income' tax have embedded taxes in their valuation, the FairTax will also be included in a home valuation based on market.You contradicted yourself.
Every realtor will understand that a home market value includes all costs and taxes whether those taxes were in the form of an 'Income' tax or a FairTax.
the FairTax will also be included in a home valuation based on market. Every realtor will understand that a home market value includes all costs and taxes...
HUH? Were you saying something about poor understanding of valuations and financing?
Adding taxes to the purchase price isn't going to increase value even if the "Realtor understands".
Adding 30% to your mortgage for taxes would be worse than any sub-prime loan...Period
BTW, you failed to include the 30% tax you'd pay every month on any interest above the fed fund rate...or maybe you don't really know as much about the Fairtax as you think you do.
Every realtor will understand that a home market value includes all costs and taxesSpeaking of Realtors, in addition to the 30% tax on the purchase of a new home there would be a 30% tax on realtor fees as well as a 30% tax on escrow/closing costs...and of course 30% taxes on escrow and realtor fees would be imposed even on "used" real estate sales.
Hope that was worded simple enough for you to understand.