With all the talk about using a flat tax or a consumption tax to replace the current system, I have only this to say. The current system is OK for homeowners who write off their home loan interest, as well as other incidental itemized deductions. For me personally, I would get screwed by either one of the new systems proposed.
I write off my mortgage interest, charitable donations, and college tuition paid for my daughter. Now how am I going to be able to pay triple the taxes (which is what I'll be stuck with) compared to my current situation?
This is something that can't be allowed to happen. Not only that, the lower income people will suffer almost as much as me. They are important too.
Paul Volker has said a value added tax will help the economy. That is impossible. The result will be people will spend less, to save money. That will result in less consumption, which will result in less demand for goods and services. The next step will be industry cutting back on their production, and service industries won't be providing as many services.
The next step is layoffs. The reduction in demand will cause massive unemployment, which most likely will put us into an economic depression.
Just say no to the value added tax.
I'll be back