Flat Tax

John Fund makes a good point. Many former Communist countries in Europe have led the way in adopting the flat tax.

While the idea might work, here is some food for thought:

Would you be willing to give up your mortgage interest deduction?

Would you be willing to give up the deduction of your state income tax?

Would you be willing to give up charitable deductions?

A good many of us probably would not. That is why I think a flat tax and national sales tax are both unworkable right now. The best solution is to untangle the web of tax regulations and truly simplify the code.

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Erick Erickson

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2 Comments

  • While the idea might work, here is some food for thought:

    Would you be willing to give up your mortgage interest deduction? Sure

    Would you be willing to give up the deduction of your state income tax? Sure

    Would you be willing to give up charitable deductions? Sure

    I answered yes to each question with the understanding that the other BS exemptions would go away. They throw pennies at us (deductions you mentioned) to deflect our attention from the hundreds of other deductions/exemptions that screw up the system. Best fix is a sales tax which exempts food. That resolves the regressive complaint usually tossed out against flat/sales tax proposals.

  • Flat Tax sounds good to me “IF”, and I repeat again “IF” I am willing to give up my mortgage deduction and my charitable deduction and my state tax deduction then all of the rest of the deductions that so many “Upper Crust” and “Business’s” will also give up any and all deductions that they currently get.
    Just go ahead and hurt me with your Flat Tax. I’m waiting on the Churches to “chime” in here on this one. No no, no exemptions allowed.