Monday, July 9, 2007

Giuliani Jeered for Opposing Flat Tax

Rudy recently didn't receive a warm reception from a crowd after suggesting that he was not in favor of a flat tax. While a flat tax might be a solution to the current mess that is our tax code, there are some benefits to the structure currently in place. The tax code as it stands promotes a number of good behaviors that serve Americans well. Tax deductions for mortgages and retirement promote home ownership and fiscal planning. Additionally, deductions for charitable donations encourage charitable giving. Granted home ownership and retirement planning are part of good common sense but if we eliminate all deductions in instituting a flat tax, will Americans still save for the future and strive to own homes? Will our charitable donations decrease?

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