Quote:
Originally Posted by AGDee
Your flat tax idea would double my income tax liability.. so, no thanks  Now once my kids are grown and out of the house and I can go rent an apartment, sure! I believe that if mortgage interest was not deductible, it would further hurt the housing industry. There would be no incentive whatsoever to own a house. I would also have no incentive, nor would I be financially able to, donate as much to charity as I do. I would also be less inclined to invest for retirement with pre-tax dollars into the stock market. I believe the flat tax would hurt the middle class the most.
The difference with sin taxes is that I have a choice in those. However, most of those are state taxes anyway and wouldn't be affected by your flat rate tax.
Keep in mind that you won't always be single with no kids and no house and whether it would really be to your advantage then. |
No financial incentive to own a house? Umm, I can think of a few reasons why owning is more attractive than renting, especially if you go with a short term (15 yr or less) mortgage. Do people really buy a house just to write off the mortgage interest? I don't think they do. The sin tax was mentioned as an example of a regressive tax that targets the poor. I still believe that a flat tax ISN'T regressive. The fact is, we need major tax reform and just getting money from the Daddy Warbucks of America isn't going to cut it. Ive read that only half of the people who file with the IRS actually have a tax liability, the other half get a full refund +. We can't sustain that. We need to collect more revenue from more Americans.
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