I've been a big fan since I heard it on Boortz and read the book. Everything about it is philosophically consistent and fiscally responsible:

• only new goods are taxed, not services, not used goods, not investments
• prices stay the same at the register before and after
• take-home paychecks stay the same before and after
• it decouples revenue from labor, anticipating automation
• the prebate makes it progressive

But I just learned that apartment renters and home renters pay the FairTax on their rentals. Is this true? Why does this service, out of all services, get a tax?

If it's the "retail" purchase of the first use of the rental home or apt, does the FairTax get dropped after 23% of the value of the property has been taxed? (For a small apt complex in Albuquerque, that 23% can be anywhere from $250k to a million.)

This seems both disingenuous and regressive, despite the prebate, especially in high-cost urban areas like New York and San Francisco. Please help me understand, so I can continue to endorse the plan whole-heartedly and with a clean conscience.