Thursday, September 27, 2007

RECAP OF FAIRTAX TREATMENT OF HOUSING

1. The FairTax completely untaxes preexisting homes.
The pre-existing or used home is the most common property
bought by first time home buyers.

2. The FairTax replaces the mortgage interest deduction.
Helps first time buyers by lowering interest rates, paid with
pretax dollars (no income taxes and no payroll taxes)

3. The FairTax Lowers interest rates.
Banks and lending institutions will no longer have to pay
income taxes on the interest received from borrowers.
Borrowers will no longer have to pay income taxes on wages
received to make these mortgage payments (principal as well as interest)

4. The FairTax removes all embedded tax costs, making homes more affordable.
When a new home is constructed, the builder will no longer have to
pay embedded (hidden) taxes in their construction materials, passed forward
from the point of manufacture to the builder to the homebuyer.

5. The FairTax enables homeowners to save faster.
Since savings are no longer taxed, The FairTax allows the
homebuyer to accumulate the down payment faster.
Homes will be more affordable and interest rates will be
cheaper, allowing homebuyers to pay off their house as a faster rate.

6. The FairTax improves the economy.
Under the FairTax, in 10 years the economy will be about 15%
larger and wages will increase far more than under the present income tax, by
approximately 13%.
And wage earners will be bringing home 100% of their income!

7. THE FAIRTAX MAKES THE HOMEBUYER HAPPY!

8. THE FAIRTAX MAKES THE BUILDER HAPPY!

9. THE FAIRTAX MAKES THE REALTOR HAPPY!

10. THE FAIRTAX MAKES THE USA HAPPY!

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