Quote:
Originally Posted by harmonious
FairTax is anything but fair. Under the FairTax, the price of new homes will skyrocket. All the materials used to build the home would be taxed and then the house itself would be taxed when sold. Imagine a 30 percent tax added onto all building materials and then onto the house itself. Then add on the interest to pay that tax.
Health care and legal services would be taxed, so would housing rentals.
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Just a disclaimer that
I never called the FairTax fair.
However, no, if the FairTax plan were implemented, buying wholesale would NOT incur taxes, and while rentals would be taxed, the investment property itself would not carry the same tax as before... and there's also the "pre-bate" to cover that part of it. Health care is another matter, but there are several arguments there that this is just the wrong thread for.
I'm not a big fan, but I'd support it if it (or any of a number of flawed-but-better-than-the-current-system plans) came up as a serious option--primarily because once the leap has been made to another system, switching to a more sensible system will be easier.