[hopespringseternal]

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".

Except that in some places (Texas) illegals currently build houses and they don't pay taxes. That is why you can occasionally find a new home for $50/sf here. Plus the amount of untaxed cash deals is staggering. As much as preventing drugs, civil forfieture is probably meant to increase the cost of doing business tax free, but that is another subject.

I support the idea behind a national sales tax, I am just skeptical of this proposal.

[kevkrom]

But even with that, the cost of the raw materials of the house raise the prices because of the taxes (and assocaited) effects. In this case, you may not see the same level of price equity because of the current fraud in the system that actually works out benefiting the consumer.

And thanks for the example that the cost of taxes does indeed affect the price of the finished product -- there are some who frequent these threads who delude themselves into thinking that sales price and tax costs to the producer have no relationship.