MIFairTax Taxation of Real Estate Commissions
Actually, the realtor will fare quite well under the FairTax/MI FairTax because the only sales that will be taxed are sales of new homes, whereas, ~80% of sales are of used homes, which will not be taxed. Looked at from that perspective, only ~20% of home sales will be taxed. In addition, commercial sales will not be taxed. Sales to businesses are not taxed as such taxation would be passed on in the price of the good or service being produced. In essence, under the current tax system realtors must pay income tax on all commissions (new and used residential property and business property) whereas, under the FairTax/MI FairTax the realtor pays no tax, however, the buyer pays a sales tax but only on non business property and new residential property (around 10% - 15% of total real estate sales).
The same points are generally true for other providers of services (doctors, lawyers, accountants, pool keepers, maids, etc.).