[69ConvertibleFirebird]

SecTreas O'Neill is strongly pushing a national retail sales tax!

This would be great but... It would have to be slowly phased in (10 - 20 years) so that the reprecussions don't tank (BADLY) the economy. Everyone has some kind of money somewhere based on what taxes will or won't do with it. Like 401Ks. I wouldn't be putting money into my 401K unless it was pretax. I can do a LOT better with other investments but the immeadiate 40% return by not being taxed can't be beat.

Plus, home ownership does have a stabilizing affect on the country. All of a sudden, with the national sales tax, it makes less sense to own your home. No write-off on the interest... let someone else deal with the headaches of maintaining my place of residence.

Too many things to go wrong here. It took 90 (more or less) years to get here we have to back out slowly.

[Tree of Liberty]

I'm sure the President is taking all of that into consideration. Keep in mind that my post is from a less than one minute statement from Cavuto. No specifics were given.

[ThinkDifferent]

Too many things to go wrong here. It took 90 (more or less) years to get here we have to back out slowly.

I understand your concerns, but I don't think we have time to take this slowly; the GOP isn't going to hold Congress and the White House forever. The income tax is a cancer on the US economy. It must be destroyed as soon as possible, even if the therapy hurts a bit in the short term.

[knak]

OK, what will the stock markets do with this news?

[BaghdadBarney]

I agree somewhat with your take on the home interest deduction (in the short term, it could be political suicide) BUT there are places that are doing just fine without the deduction, i.e. Europe. Housing values in Europe are comparable to those here in the States and they're citizens don't enjoy a tax deduction. Have your read the Robbins' book on the Flat Tax? It goes in-depth on this question...

[carenot]

Plus, home ownership does have a stabilizing affect on the country. All of a sudden, with the national sales tax, it makes less sense to own your home. No write-off on the interest... let someone else deal with the headaches of maintaining my place of residence.

Well, sell your home to someone else. No tax on it. Buy another used home, no tax.

[PhilWill]

Actually, it wouldn't tank the economy at all, it would stimulate it ... far more than the so-called "Economic Stimulus Package" that passed last year.

One small example .. if cutting taxes by $1.3 Tril over 10 years is stimulative, what would saving $2.5 Tril in compliance costs over the same period do?

And what about improving the price competitiveness of US goods vs our foreign competitors not only here in the US, but in foreign markets as well. Even ex IRS agent could find a job in THAT economy!!