Our Tax System

[JimNtexas]

But the rich pay more in the first place, I argued, so it stands to
reason that they would get more money back.

Actually, a single Mom with two kids and an income of $12000 will pay no taxes and yet she will get a "refund" of around $5000.

I think that's the best tax deal going.

Of course $17K income isn't much, unless you are a cfi I guess .

 

[Big Duke Six]

But even if it doesn't, and the properties no longer pay their way, then you can raise the rent. If rents become too high, then home ownership will rise, and you can then sell your property at a profit.

An interesting thought, but I take a different tack on the logic. My original point was that rents will rise. This doesn't necessarily mean that homeownership will rise if rents get too high, as you state. A person rents because they can't afford to buy, so the only way they could afford to buy in your scenario would be because housing prices fell. That would be EVERYONE'S house, not just mine. That may not be a bad thing, but it's part of the equation.

I'm not saying the current system is great. And I know how much we spend complying and enforcing the current system. We would have to enforce any system, I believe. But anyway, I was just pointing out that the beneficiaries of the current system can be regular guys like me, and in most cases the people who rent from people like me. I (and many others) provide a nice step up from an apartment for families who can't afford to buy. And, I don't have to shelter my income, I just do. So can anyone, at any income level. You don't have to be rich to benefit from it, and I like to think (well, I actually know) that I provide a nice house in a nice area for people who would have otherwise been stuck in an apartment.

This is a discussion of the impact of a flat/consumption tax on just one little aspect our society. I'm not smart enough to claim to understand what their impacts would be on the myriad other facets of our lives, but it is interesting to discuss.