Not true. Earned interest is capital gains. As such, it is income and will not be taxed.
Interest is the price paid for borrowing buying (consuming) money.
Only for the bank, or wherever you are investing it. Since there will be no more corporate taxes, banks will not have to pay interest as well.
I get your overall drift that interest earned will be lower as well. That's fine. That just means people will take bigger risks to get higher interest. If you are risk-averse, you will settle for lower levels of interest. If you are a risk-taker, you will go for higher return and more risk.
Not true. You'll need to do your homework. Read the legislation.
From Hr2525 (the fairtax)
`SEC. 801. DETERMINATION OF FINANCIAL INTERMEDIATION SERVICES AMOUNT.
`(a) FINANCIAL INTERMEDIATION SERVICES- For purposes of this subtitle--
`(1) IN GENERAL- The term `financial intermediation services' means the sum of--
`(A) explicitly charged fees for financial intermediation services, and
`(B) implicitly charged fees for financial intermediation services.
`(2) EXPLICITLY CHARGED FEES FOR FINANCIAL INTERMEDIATION SERVICES- The term `explicitly charged fees for financial intermediation services' includes--
`(A) brokerage fees;
`(B) explicitly stated banking, loan origination, processing, documentation, credit check fees, or other similar fees;
`(C) safe-deposit box fees;
`(D) insurance premiums, to the extent such premiums are not allocable to the investment account of the underlying insurance policy;
`(E) trustees' fees; and
`(F) other financial services fees (including mutual fund management, sales, and exit fees).
`(3) IMPLICITLY CHARGED FEES FOR FINANCIAL INTERMEDIATION SERVICES-
`(A) IN GENERAL- The term `implicitly charged fees for financial intermediation services' includes the gross imputed amount in relation to any underlying interest-bearing investment, account, or debt.
`(B) GROSS IMPUTED AMOUNT- For purposes of subparagraph (A), the term `gross imputed amount' means--
`(i) with respect to any underlying interest-bearing investment or account, the product of--
`(I) the excess (if any) of the basic interest rate (as defined in section 805) over the rate paid on such investment; and
`(II) the amount of the investment or account; and
`(ii) with respect to any underlying interest-bearing debt, the product of--
`(I) the excess (if any) of the rate paid on such debt over the basic interest rate (as defined in section 805); and
`(II) the amount of the debt.
`(b) SELLER OF FINANCIAL INTERMEDIATION SERVICES- For purposes of section 103(a), the seller of financial intermediation services shall be--
`(1) in the case of explicitly charged fees for financial intermediation services, the seller shall be the person who receives the gross payments for the charged financial intermediation services;
`(2) in the case of implicitly charged fees for financial intermediation services with respect to any underlying interest-bearing investment or account, the person making the interest payments on the interest-bearing investment or account; and
`(3) in the case of implicitly charged fees for financial intermediation services with respect to any interest-bearing debt, the person receiving the interest payments on the interest-bearing debt.