Dear President Donald Trump
If the USA cost of a house excluding land is $450,000 and the new home owner borrows 80% of the purchase price, the home loan mortgage is $360.000.
A USA mortgage home loan of $360,000 over 30 years at a fixed rate of 6.75% is a monthly repayment of $2,335 (see below, that’s 50% of the monthly take-home-pay of $4,688) and over the 30 year term of the loan interest paid is $480,584 or 106.8% of the purchase price of the house. This is home ownership SLAVERY in the USA.
ln Australia, 2% LIBERTY TAX could reduce the price of a new house by 36% to $288,000, a saving of $162,000, and reduce the 80% home loan mortgage to $230,400
A USA mortgage home loan of $230,400 over 30 years at a fixed rate of 6.75% is a monthly repayment of $1,495 (see below, that’s 32% of the monthly take-home-pay of $4,688) and over the 30 year term of the loan interest paid is $307,574.
But with 2% LIBERTY TAX the SAVINGS could be far greater.
In Australia 2% LIBERTY TAX on average could reduce prices of goods and services by an average of 30%.
Every worker, pensioner, social security recipient, etc. business and Government keeps their existing money, so workers keep their net of tax take-home-pay.
With a 30% reduction in prices the workers’ take-home-pay could buy 40% more goods and services because every-time they spend they save.
If the average monthly take-home-pay net of tax and service changes of a USA worker is $4,688, the 40% increase in purchasing power is $1,875 per month. This is $380 more per month than a repayment of $1,495 per month, so that no repayment is made from the worker’s take-home-pay of $4,688 per month.
The reduced price of the house is $288,000 and the reduced home loan mortgage, 80% of $288,000 =$230,400. If the USA worker instead of paying a monthly repayment of $1,495 adds the increase in purchasing power of $1,875 and makes a monthly repayment of $,3,370, a mortgage home loan of $230,400 can be repaid in less than 7years. The USA worker could be the owner of their home with NO mortgage home loan. Plus the worker has his monthly take-home-pay of $4,688 to spend or save and invest.
As you would know the value of property is based on position, position, position and prices only fall when there are more sellers than buyers. With 2% LIBERTY TAX homeowners could have the money to pay off early their mortgage home loan and still have money to spend with no pressure to sell. New home buyers could benefit with the 2% LIBERTY TAX reduced prices and reduced mortgage home loans and could have money to spend on raising their family.
2% LIBERTY TAX could END home ownership SLAVERY in the USA.
Now that’s a blessing for USA workers and their families. Your 168 million workers could save and invest to be Free in their own Country and Make America Great Again.
Please understand that it is the USA workforce of 168 million with 2% LIBERTY TAX that can SAVE America from Communist China and BRICS.
Best wishes
Derek Smith CA