[hchutch]

Total re-write, yes.

Sales tax? No. A flat tax is better, preferably if we can keep the 401(k) and mortgage interest deductions to go with the personal exemptions.

[lelio]

A flat tax is better, preferably if we can keep the 401(k) and mortgage interest deductions to go with the personal exemptions.
And therein lies the rub. Why keep these exemptions around? Why should renters have to pay for your mortgage interest? What about my luxury 100' boat tax exemption, yada yada yada.
People like to talk about flattening the tax except when it comes to their personal ones. But that's human nature to protect what you have.

[weikel]

No a flat tax wouldn't be better because a flat tax still lets the IRS destroy your life at the stroke of a pen.

[Phantom Lord]

Why is everyone so hung up on keeping their mortgage deduction? If at the end of the day you keep MORE of your hard earned money under a new tax code without it, why would you want to hang onto it and have LESS of your money at the end of the day?

And 401(k)s do not escape taxation. You contribute pre tax dollars, but are wacked at the time of withdrawl and if you withdraw early you really get creamed.

[Phantom Lord]

And a flat tax would get rid of the personal exemptions. When you have exemptions, you do not have a flat tax, and you leave the door open to more and more monkey wrenching by congress to provide benefits to special interest that and special interest this depending on who is donating big that day.

I like Forbes plan. NO TAX on the 1st $35,000 of income and a flat % for every dollar there after with NO deductions.

[Principled]

A flat tax is better, preferably if we can keep the 401(k) and mortgage interest deductions to go with the personal exemptions.

I disagree. A flat tax keeps payroll taxes. A flat tax keeps withholding. A flat tax keeps the IRS. A flat tax doesn't stay flat (read history). A flat tax is a VAT. A flat tax means the feds still have a need and the right to know how much you make and how it's made. And a flat tax means you still are at the mercy of the arbitrary, capricious income tax code.

BTW, ALL income is invested tax free under the nrst - not just 401k money. Further, all home mortgage interest will still be paid with untaxed dollars. And, there is no need for personal exemptions under a sales tax - all earnings are always 100% exempt.