January 23, 2010

MIFairTax Taxation of Real Estate Commissions~Roger Buchholtz

MIFairTax Taxation of Real Estate Commissions

Roger Buchholtz

All goods and services will be taxed when sold to the end user, however, sales commissions are taxed today, the real estate salesman pays an income tax on the sales commissions. Like today, sales commissions will be included in the total purchase price to the consumer.  The difference is that under the FairTax/MI FairTax the tax is more transparent to the buyer.  Is it better for the realtor to have to pay an income tax or the customer to have to pay a sales tax?  It makes no difference to the consumer because they ultimately pay the tax.  Because the realtor will have no income tax to pay he/she can have the same net income at a lower commission.  If this is done the realtor is kept whole, and the customer is also kept whole because the lower commission would offset the sales tax on the commission.  The net impact of the commission on the purchase price of the home would remain essentially the same.

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.).

Roger Buchholtz


Question of State Liberty in State of Michigan, one of 50 Nations in the USA.

Came across & tweeted the first tweet and saw FairTax on the Ballot.  Went to the link and found a question of Liberty being asked under State Sovereignty of the Citizens.  Interesting.  See my comment below:

@MichiganRadio: 2008 Revisited: Michigan legislators tinker with voter-approved laws http://bit.ly/5ilfNW | FairTax Approved! #migop #mitcot

@MichiganRadio: .. Mi leg. tinker w/voter-approved laws |Opps, I jumped the gun. Thought MI Leg. put tax structures on ballot. Plz #migop

2008 Revisited

(Associated Press) - Michigan lawmakers are exploring possible ways to change measures related to stem cell research and the medical use of marijuana that voters approved in 2008.

Legislators, mostly conservative Republicans, say the measures need clarification to ensure proper oversight.

Lawmakers are struggling to find the fine line between better defining voter-approved measures that are vague or pose enforcement problems and upholding the people's will.

Nearly 53 percent of Michigan voters approved loosening restrictions on stem cell research. About 63 percent voted in favor of allowing the use of marijuana for medical purposes with a doctor's approval.
© Copyright 2010, Associated Press

My comment:

That question is everywhere. Now property owners cannot smoke tobacco on their own property. We are forced to pay for how many car insurance agents, fining the poor with this ridiculous SOS fee by Gov. Granholm. Did anyone approve that? If so, ...whew.

Michiganders are not servants to be baby sat. We need our freedom under State Law too. Contemplate how to deal with abuse rather then use. If you want to regulate, try liquor. My, how the world turns.

Let the people of Michigan have their choice of socialism or the FairTax? Put the fiscal plans on the ballot and let the people decide.

Liberty is our call to Arms and it is our right to choose. What is fiscally & restrictively now,  is killing us, chasing jobs overseas. We can do better~


FairTax Nation~Operation FairTax – Storm the Hill-April 14th thru 16th


Replace All Federal Taxes on Income with the FairTax Act of 2009, HR 25/ S 296

A message to all members of FairTax Nation

FairTax Nation proudly announces:


Operation FairTax – Storm the Hill

April 14th, 15th & 16th, 2010

Washington, D.C.


Operation FairTax is our first national conference for supporters of the FairTax. Storm the Hill promises to be one of the biggest
public displays yet to create awareness of the FairTax. Combined, these events
represent the largest and most important effort made in FairTax Nation's
history. Be part of history.  Attend the first annual conference of
FairTax grassroots supporters.

Arrive in DC at the Hyatt Regency Crystal City
on Wednesday, April 14th and join us for a "Meet and
Greet". Storm the Hill on Thursday, April 15th. Friday, April
16th will be a day filled with inspiring speakers, seminars and grassroots
workshops designed to provide attendees with new and creative tools to spread
the word about FairTax far and wide.

The easiest way to book your hotel and make your reservation for Operation FairTax is to visit FairTax
on the web. However, you can also Register
and book your room

We will send additional emails about the conference agenda as we get commitments from speakers and organizations. Of course, you can
always keep up to date be signing in to the FairTax Nation web site.

Thank you,

Sean Fagan

Special Projects, FairTax Nation



Visit FairTax Nation at: http://www.fairtaxnation.com/?xg_source=msg_mes_network

I-caucus has a Horse in the Illinois Senate Race & he needs your help !!!

I-caucus has a Horse in the Illinois Race and he needs your help !!!

This past weekend, Illinois I-caucus members endorsed Judge Don Lowery in Illinois and I am excited to see such a stellar candidate emerge from the vetting process.

Here's problem #1: Mark Kirk is the front runner, and the choice of the Republican party establishment...and Kirk is currently a Representative who voted for TARP and was one of only 8 Republicans to vote for Cap and Trade which you may recall passed by only 7 votes.

Here's problem #2: There are several challengers who are all currently splitting votes amongst themselves which is working to Mark Kirk's advantage

Here's problem #3: A lot of media types, even some of the Fox News media types, are touting Patrick Hughes as the "tea party" or "grass roots" candidate...but Hughes is not the true fiscally responsible constitutional candidate in this race!

OK, so now Here's SOLUTION #1: YOU are the solution!

Beginning Right Now today, we need every I-caucus member to do whatever they can to spread the word about Judge Lowery in Illinois.

WE have 11 days and 11 days only!


1 - Email anyone and everyone you know in Illinois about Judge Lowery and our endorsement.


2 - Post on blogs and comment sections anywhere and everywhere you can about Judge Lowery...especially if you see posts that are supporting anyone else.


3 - You have info above on Mark Kirk..."TARP" and "Cap and trade" are sufficient to write him off. Make sure Illinois voters know about it!


4 - Here's some important info for you, because we must let grass roots activists and the media know that Hughes is NOT the right choice and NOT the choice of grassroots tea party members in Illinois:

A) Patrick Hughes would not agree to go through our vetting process, despite repeated attempts by local members to get him to do so and despite a personal email plea I sent to his campaign manager explaining who we are and that we wanted to help keep Kirk out of office.

B) This is huge: The Illinois Conservative Network, a respected grassroots group, just switched their endorsement on January 15th away from Patrick Hughes...and over to our endorsed candidate Judge Lowery:


C) As reported by our friends over at ResistNet, Tea Party members of Kane County (KCAP) which is home to Ililnois' 2nd largest city have endorsed Lowery over Hughes:


D) The Southern Illinois Tea party has vetted and approved Lowery over hughes AND they announced yesterday (Jan. 21st) that "there are groups looking to come into Illinois and capitalize on the tea party movement. They are trying to speak for us and to push a
candidate (Hughes) that we have seen in person and have rejected."


E) Our friends at the Examiner.com are reporting that the Illinois State Rifle Association has endorsed Judge Lowery:


f) and then the Gun owners of America endorsed Judge Lowery: http://www.examiner.com/x-17412-Macon-County-Conservative-Examiner~y2010m1d21-Gun-Owners-of-America-endorses-Hughes


5 - Here's some good info about Judge Lowery:

You tube about Judge Lowery: http://www.youtube.com/watch?v=AK6-L-cZSD0

Visit Independence Caucus at: http://icaucus.ning.com/?xg_source=msg_mes_network