[b]What is the FairTax?[/b]

The FairTax is a comprehensive proposal that replace all existing federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR-25) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, social security, medicare, and self-employment taxes and replaces them with one simple, visible federal retail sales tax - administered primarily by existing state sales tax authorities. [i][b]The IRS is disbanded and defunded.[/b][/i]

The FairTax taxes us [b]only on what we choose to spend [/b]on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent and intelligent solution to the frustrations and inequity of our current tax system.

Most of us are self-employed individuals paying both the employee side and the employer side of FICA taxes. With the FairTax, that tax burden is GONE.

As noted above, the FairTax taxes only NEW goods and services. The purchase of a USED, existing home is not subject to this sales tax. In addition, your savings, your investments, your tuition, your "B-to-B" purchases are all not subject to the FairTax. The tax only applies to the retail end-user. Commercial real estate sales are typically 'B-to-B' transactions and are not subject to this tax, as such, YOUR COMMISSION is NOT TAXED.

If you are currently charging a "X"% commission, it's quite possible that you could cut your fee by a point or so and still make more NET earnings than you are today, after paying income and FICA taxes on those gross earnings. In addition, you will save a TON on tax compliance and documentation costs.

People don't realize that our current tax system imposes a compliance and documentation cost of almost $600 BILLION on our nation's economy before even one dime in tax revenue is collected. The last time you bought something at Walmart, did the clerk ask you how much you earn? or if you own or rent? or how many kids you have? or how many deductions you claim? Of course not! You simply paid the sales tax and went on your way. With the FairTax, your documentation costs are almost non-existent.

For answers to the Real Estate Professional's questions please read this commontary on the impact of how the FairTax would affect Home construction & sales industry and how it would affect the commercial real estate business, click this link:

http://www.fairtax.org/PDF/TheFairTaxTreatmentOfHousing.pdf

I look forward to responding to your comments. :whisper:

Support both the Candidates & "Congresscritters" that support the FairTax!