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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (25574)12/7/2004 4:59:07 AM
From: OblomovRead Replies (2) of 306849
 
Elroy,

What do you think of the Hall-Rabushka Flat Tax, the key idea of which is to tax all income only once. This system would eliminate the business and personal deductions for interest paid, but would also eliminate the tax on interest income. Hall and Rabushka say that this would eliminate the structural preference of debt financing over equity financing in businesses, and would also make household balance sheets more stable, and would distribute the tax burden more fairly. Further, it would effectively eliminate the distinction between capex and opex by eliminating the ability to depreciate/amortize capex for tax purposes. Your thoughts?
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