Quote:
Originally posted by NewportBarGuy
I would favor a Flat Tax only if you were able to give me a 100% assurance that there would be no tax shelters available to hide income. This also raises another question, would we still have deductions? Would you still be able to write-off your mortage interest?
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Most flat tax proposals eliminate most if not all deductions.
The mortgage interest issue is a false one. People freak out because they included tax savings in their calculations when determining how much house they could buy, and they don't want to lose the ability to make mortgage payments when they can't write off mortgage interest any more. What they forget is that the flat tax results in an equivalent or lower overall tax burden, so they'll still be able to make mortgage payments without a problem. Unfortunately, this issue confuses so many people that it may be impossible to get a flat tax approved. Just ask Jack Kemp.