[kevkrom]

Of course the exception is the investor who buys the new home, tax free, which gives him an advantage when competing with private buyers for new homes.

This sounds remarkably familiar... Willie Green's old shtick, and still equally as wrong, regardless of how many times its recycled.

The investment purchaser is buying it because he expects to do something with it -- if it's rented, the rent is taxed, which offsets any "competitive advantage" the landlord would get buying the property; he still needs to charge a high enough rent to make a profit (especially since it's no longer a tax shelter), but with the tax applied, the rent vs. own numbers are no improvement for him. Besides, tax is due on the property if it's ever converted from rental to a primary residence, which impacts his sales options down the road.

If the property is just held for appreciation, it, unlike other properties around it that have already had the taxes paid, is still untaxed, which means that when sold for a profit, the tax is owed on the original price plus the profit. This is not only no advantage for the "investor", it's a drawback.

[lucysmom]

The investment purchaser is buying it because he expects to do something with it -- if it's rented, the rent is taxed, which offsets any "competitive advantage" the landlord would get buying the property; he still needs to charge a high enough rent to make a profit (especially since it's no longer a tax shelter), but with the tax applied, the rent vs. own numbers are no improvement for him. Besides, tax is due on the property if it's ever converted from rental to a primary residence, which impacts his sales options down the road.

The FairTax taxes the renter, not the landlord; the landlord merely becomes the agent of the state (and gets a little money to pay him for his efforts), collecting the tax and passing it on to the government.

The renter gets his monthly check from the government to "help" him offset the tax he pays to the government. (The government giveth and the government taketh away; blessed be the government)

The landlord has a competitive advantage when he buys a new home, because he pays less. The landlord NEVER pays the sales tax unless he converts the home from a rental to his own private use. If he sells the home to a buyer who intends to use it as a residence, the buyer pays the tax, not the landlord. If the buyer intends to also rent it out, no tax is paid.

If the property is just held for appreciation, it, unlike other properties around it that have already had the taxes paid, is still untaxed, which means that when sold for a profit, the tax is owed on the original price plus the profit.

This is news to me - I thought the FairTax exempted investment profits from the tax. Are you telling me now that if I buy a business and sell it later for a profit, I pay sales tax on the profit?