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10.11.2005

"Bush Tax Panel Considers Limiting 2 Popular Deductions"

"With a mandate to develop an overall proposal for changing the tax system that is revenue neutral - meaning it neither raises nor lowers total tax receipts - the commission must find enough revenue to offset the amount now generated by the alternative minimum tax."

Ridiculous! Read Forbe's flat tax book. All these estimates are static, meaning they don't account for any possible changes in bahavior in response to the tax.

Yah know why that's ridiculous?! I'll tell you why: almost all tax rules are designed to change behavior:
-Mortage Interest Deduction
-Home office expence deduction
-Child tax credit
-Earned income tax credit
-Social Security tax
-Inheritance tax
-Graduated income tax
-So much of the rest of the millions of words in the tax code.

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