[is_is]

The one downside is that eliminating the income tax will immediately devalue all residential real estate by about 20 percent.

I don't believe that for a second.....houses will still be worth todays market value PLUS sales tax, due to the fact that they will be purchased with NON TAXED dollars which will, be more than able to absorb the sales tax.

Under my vision the sales tax would be added to each monthly mortgage payment (divided out over the life of the loan)

[crusher999]

Yeah....but when you consider that your only keeping about 50% of the money you make (under the current tax code)...you'll actually net a 30% value increase.