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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (111412)	4/27/2005 8:24:21 AM
From: LindyBill	Respond to of 793939

I assume any flat tax would be a tax increase to these income people unless some type of minimums or allowances are built into system. All the flat tax proposals have a minimum that excludes low income people. They are much easier to figure than the ones proposed for a VAT. The flat tax keeps it on income, which is much more politically possible than a consumption tax, such as a Sales or VAT. The sales or VAT would be very unpopular with seniors, and you know how politically powerful we old farts are.

To: John Carragher who wrote (111412)	4/27/2005 10:44:06 AM
From: michael97123	Read Replies (1) \| Respond to of 793939

Flat tax + Fica are a double whammy for poor and middle class. I know that there are minimums built in. Also deductibility of mortgage interest fuels the real estate market. Removing the fuel at this time might be very inappropriate. Same for property taxes. Many folks couldnt afford their homes without this deductibilty especially in the high tax states. Charities also could be hard hit if that deduction is removed. I would love to file a postcard each year and not have to spend all that time with accountants but i am not sure the alternative will not be worse. And as you or bill said, whatever the rate on a flat tax, spenders will be looking to raise it. If i were voting on this now, personally i dont think this is the time to make the change. I would concentrate on SS reform including adding a Fica income exemption even if i had to raise the limits subject to the tax as part of the solution. For example, Exempt the worker contribution for the first 20k. And crunch the numbers, the retirement age etc from there. Also regarding age, there should be some allowance made for folks who do manual labor. They may not be able to work beyond 60 much less 70. So perhaps some limited disablilty status for those guys and gals.