Monday, October 12, 2015

The flat tax proposal is back again


I’m not personally a fan of Rick Santorum (“It Takes a Family”, Book review blogs, March 5, 2012), and as I recall, he tried to sponsor a federal constitutional amendment defining marriage back in 2004, and that went nowhere. 

But Santorum has a intriguing proposal for a flat tax in the Wall Street Journal today, as an elixir for prosperity, link here. Are their shades of Steve Forbes?   Santorum would allow minimal mortgage interest deduction and charitable giving, but would replace all other deductions with a standard tax credit (to which there could be other per-child credits).  True, he gets rid of the AMT (which can ambush "ordinary" taxpayers) and apparently of estate taxes.  
One problem is that Santorum wants to pay for this by repealing Obamacare, with all its implied federal spending.  He talks about Health Savings Accounts.  But right now, there would be too many people falling back through the cracks, especially with pre-existing conditions, who could not get insurance at all, again.

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