Embedded taxes in construction costs

John

I saw your posting on this subject, and while I'm sure that you will get many responses I thought I would offer you my perspective as a full time contractor.

When you buy a new home in today's income tax market, you are paying tax that is embedded in the payrolls of everyone that works on the project, from the carpenter that frames the house, to the mill operator that cuts the lumber from the felled trees, to the timber cutter that felled the tree and drug it out of the forest to the mill.

This income tax is marked up with profit at the various levels of production, which further inflates your final cost.

Under the FairTax method, the tax would be paid at the final point of sale, as the builder would be exempt from paying the tax on the products that are incorporated into the new home. The tax is paid at the final point of sale only once, by the consumer, not the producer (the builder collects the tax and forwards it to the collection agency). I forsee that the Fairtax would be applied to the final bill,
like sales tax currently is applied on consumer goods, so that it would not be marked up with overhead and profit percentages, like the current income tax is. More savings.

I'm sure that if you take a few minutes to digest this concept, that you will come to the same conclusion that I have, and that is the undeniable fact that the FairTax is just plain simple as it unburdens the means of production so that the consumer is the ultimate winner.

Best Regards

Robert Nathan