Monday, December 03, 2007

Please...

Giuliani Assails 'Fair Tax' Plan (http://www.breitbart.com/article.php?id=D8TA6KR80&show_article=1&catnum=0)

GREENSBORO, N.C. (AP) - Republican presidential hopeful Rudy Giuliani criticized the "fair tax" plan that has been touted by rival candidate Mike Huckabee on Monday, saying it could hurt home buyers.
The former New York City mayor cited the struggling U.S. housing market as a reason to avoid the plan, which would eliminate all taxes on income and investments in favor of a hefty federal sales tax.
A questioner asked about the plan but did not mention Huckabee. Nor did Giuliani mention his rival in his response.
"I think there are several tax deductions that are vital to our economy," Giuliani said. "This would not be a good time—I don't know if there would ever be a good time to do this—to advocate ending the home mortgage deduction. The home mortgage deduction is considered by many critical to the ability of people to buy a home and keep their home."
He also said deductions for charitable contributions and state and local taxes were important tax breaks that Huckabee's plan would eliminate."
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Who would seriously want to keep the system we have now, instead of a much simpler, less time-consuming option, just for the deductions? No tax deduction is "vital" to the economy. People won't refrain from buying a house because they won't get to write part of it off. And it has been shown that charitable giving actually increases when taxes are lowered, not necessarily when deductions are increased.

It'd be one thing if he were showing how his radical tax simplification plan was preferable, but he's not. Only Thompson and Paul could do that. How does Rudy want to drastically reform the tax code??

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