Arguing against the flat tax in the same issue of USN&WR is Clemson University economics professor Holley Ulbrich, a longtime foe of the flat-tax, who asks: how would you feel about losing your mortgage-interest deduction on your taxes? She warns of:
"...the disruptive effect of eliminating deductions, credits and exclusions that benefit the middle class as well as the rich and that play important roles in our lives—pension contributions, employer-provided healthcare, and deductions for mortgage interest, property taxes, and charitable contributions that support everything from soup kitchens to education to the arts. A flat tax would shift tax obligations from the rich to the poor, and especially the middle class, and eliminate desirable tax incentives for retirement savings, home ownership, and charitable contributions. Simple? Yes. Efficient and equitable? Not so much."
I don't know anyone who pays taxes who thinks, "Wow. This system is terrific! It's easy to figure out and fair to me, my family and my business!"
There is some movement underway to reform the U.S. tax code, even from non-flat-taxers. Today, the Bipartisan Policy Group is hosting a seminar on the topic. A flat tax should fairly be included in any reform discussion, and not simply discarded as the ravings of extremists.
