No. of Recommendations: 1
A 23% tax on buying a house would just about kill the RE market.

Why? Assume:

1. Monthly net income = $1500
2. Monthly mortgage = $500 (a third of net income)
3. A 15% increase in net income (% rises as income rises)

After change:

1. Monthly net income increase = $225
2. Monthly mortgage increase = $115

Of course, that net income increase also has to pay consumption taxes on other goods. My question would be what happens to FICA taxes?
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