A national retail won't happen for the following reasons.
If the mortgage tax deduction is repealed, any 2006 congressional challenger will get a huge issue to use against the incumbent.
If the mortgage deduction is retained, we'll still have pieces of the old income tax system, which is unacceptable to a major block of potential NRST supporters.
To push through a national sales tax, advocates need to repeal the 16th amendment, while simultaneously convincing reluctant Congressmen that imposing a tax of about 20% on almost everything and scrapping the mortgage deduction won't cost them their seats.
It'll never happen.
If you pay not tax on your income, there is no point in having a mortgage tax deduction.
People have to change their whole way of thinking.
E.g. someone makes $60,000, with a mortgage interest of $20,000. Now that person pays taxes on $40,000 of their income.
Under the national sales tax, you get the entire $60,000 in hand, pay your $20,000 mortgage and you ONLY Pay taxes on the $40,000, IF you spend it all. Even then you are not paying any more taxes. And if you don't spend the $40K, you are ahead.
They will have to figure out what the appropriate sales tax rate is, but I don't see it as hurting people who own their homes and are paying interest.
Quote:
"A national retail won't happen for the following reasons. "
(old thinking "reasons" deleted)
There are far more reasons it might happen than there are reasons it wont. People are goddamed sick of the IRS and the abuse it has heaped on american life.
There has to be a different way. Mortgage deductions are not that big a deal when you are given the prospect of getting the IRS off your back.
Although I would love to see us TAX consumption and not production, it ain't going to happen in my lifetime.