On the recordApril 18, 2023
One more myth: The FairTax Act will make new homes too expensive, and it will eliminate incentives like the mortgage interest rate deduction. I hear this all the time. Again, wrong. Under the current system, every time a new home is purchased, a home buyer is paying an increased price that results from embedded costs. See, that is what people don't understand. Taxes are embedded. They are embedded in the prices that you are paying right now. Under the FairTax Act, when you buy a new home, these embedded costs are eliminated, meaning the cost for consumers can fall relative to the price of home construction and compliance costs. Additionally, under the FairTax Act, mortgage interest rates are expected to drop as interest income falls toward the tax-free bond rate. Mortgage interest rates are expected to fall under the FairTax Act. Wow. Mr. Speaker, I yield to the gentleman from Virginia (Mr. Good), a great advocate of tax reform.
