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To: Always Right
I build new homes, and I can say with 100% certainty, if they added 30% sales tax on to the cost of new homes, I would be out of business.

It isn't just the price, it is the loan to value ratio. That 30% can't be financed since few houses can be profitably built for 23% less than market value.

Yeah, it would kill the housing market deader than a doornail.

41 posted on 04/23/2004 8:49:07 AM PDT by hopespringseternal (People should be banned for sophistry.)
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To: hopespringseternal
Don't fall into the fallacy that the pre-tax price after the NRST goes into effect will be the same as the "market value" today. The effects of income taxes already build a 20-25% (minimum) tax into the price of that house today. With the income tax gone, the costs of building that house drop, making the NRST after-tax price roughly equivalent to today's "market value".

Add in that people will have more take-home pay (no income tax or FICA taken out of their checks) and lower interest rates, and I'd be more worried about the fate of landlords, because all of their customers will be flocking to buy houses.

44 posted on 04/23/2004 8:55:55 AM PDT by kevkrom (The John Kerry Songbook: www.imakrom.com/kerrysongs)
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