[ArGee]

Tha law of unintended consequences always rules, so you could be correct. On the other hand, an offsetting investment binge on the part of the wealthy who no longer have to waste time and energy hiding their incomes could inhibit the effect that concerns you.

Additionally, think of what would happen when the current workforce that is totally devoted to sheltering income (I've heard as much as 33% although I don't know how accurate that is) start doing productive work instead.

It could revolutionize every economic model we have.

Shalom.

[RobRoy]

>> It could revolutionize every economic model we have.<<

I think it would. BTW, one of the strong arguments (and I mean REALLY strong) for home ownership is the deductibility of your interest and real estate taxes. Several industries have grown up around it.

With no income tax and only sales tax, say buh-bye to all of them to one degree or another. There will also be less incentive to own your own home so I suspect being a landlord will be more profitable. Except say goodbye to all those tax incentives for owners.

The playing field in one of the most dollar-laden industries in the country will suddenly switch into a parallel dimension. New rules, new game. Kind of reminds me of rollerball...