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Bill Pelland · Joined: 25 Feb 2008 07:34 am Posts: 385

Did not miss the point at all. This global economy is tough. My point is the GM and Ford over the years have lacked foresight and as a result Honda, Toyota and others have gained market share in the USA. How is it that foreign car manufacturers have built plants in this country and do just fine.

After GM made that statement in 1980, President Reagan saw fit to raise corporate income taxes by 50 billion dollars and eliminate another 300 billion dollars in corporate tax cuts.

Regardless, just because we have to compete in the world and taxation is one piece of that does not justify a tax that is FOOLISH. The legislators backing this tax are not thinking it out.

Consider this: You buy a 300,000 home the year before the fair tax is enacted. Now, according to your side's arguement, the price of that home drops by 25% to 225,000. A person buying a new home comparable to yours will pay 292,500 but 67,500 will be tax. If you had to sell for some reason, even if you could get the 300,000 you paid, the government would realize 90,000 of your sale and you could not even recoop what you owe.

'UN' FAIR TAX - Still a bad idea.

Obama for President
Noriega for US Senate.
(STOP THE FOOLISHNESS AND VODOO ECONOMICS)

Bill pelland

Joshua Pritikin · Joined: 10 May 2008 07:13 pm Posts: 3

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| Consider this: You buy a 300,000 home the year before the fair tax is enacted. Now, according to your side's arguement, the price of that home drops by 25% to 225,000. A person buying a new home comparable to yours will pay 292,500 but 67,500 will be tax. If you had to sell for some reason, even if you could get the 300,000 you paid, the government would realize 90,000 of your sale and you could not even recoop what you owe.

Before you go criticizing the FairTax, you should take care to understand how it works. The tax is only assessed on sales of new products. Sales of used products are not taxed.

In your example above, you did not specify whether the home purchases are new homes or a used homes. Most homes on the market are not newly constructed. Hence, after the FairTax is enacted, most house purchases will be made with pretax dollars. That's a much larger tax break than the mortgage interest deduction. With the mortgage deduction, you don't pay tax on home loan interest, but you still pay tax on the principle. Under the FairTax, you don't pay tax on the principle either (for used homes).

Jeff Holberton · Joined: 19 May 2008 07:49 pm Posts: 19

Bill,

I appriciate your willingness to discuss this topic. A financial burden not mentioned in the current system when running your figures; and non existent under the fairtax is the compliance costs.

Once someone has a firm understanding of the nature of supply and demand, the basis of a free market system, understanding the benefits of the fairtax are relatively easy. Opponents to the fairtax lose credibility when they debate this topic by throwing out false statements such as there being a tax burden on the resell of a home.

I have to take you to task that you have not read the fairtax proposal as you stated that you have; nor have you read the book. Please take the time to do so.

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