WE'RE GOING TO HAVE TO GO TO A VALUE ADDED TAX SOON (AND HOPEFULLY SOME CUT IN INCOME TAXES FOR BALANCE). VAT WILL HELP REDRESS THE OVERCONSUMPTION ISSUES WE HAVE NOW. VAT MAKES IT HARDER FOR THE RICH TO AVOID TAXATION THROUGH TECHNICALITIES. CAPITAL GAINS TAXES NEED TO BE LOWERED TO ENCOURAGE INVESTMENT AND AVOID DOUBLE TAXATION. BUSINESS INCOME TAXES NEED TO BE LOWERED TO ENCOURAGE EMPLOYMENT.

I THINK WE NEED TO PHASE OUT MORTGAGE INTEREST DEDUCTIONS AS WELL, BUT THEY'D BETTER DO THAT SLOWLY (OR WITH GRANDFATHERED MORTGAGES) SINCE SO MANY PEOPLE BOUGHT WITH THAT DEDUCTION WORKED INTO THEIR BUDGET.

I really hope you are wrong on the above accords. VAT is a disaster. They already have it in Canada, and it is a major impediment to buying "everything" but especially if you like any type of entertainment or dining. As for overconsumption...it seems to be the American way. If you want to stimulate the economy, VAT would be a deathblow. Phasing out Mortgage interest deduction, on the other hand, does make sense in the long run, but how do you begin to do that, when the whole real estate market, especially for first home ownership depends upon it? If that were to occur ,there would be less incentive to buy, and renting would take over..again that is exactly what happens in Canada, where there is NO deduction for mortgage interest; however rental properties are the norm. So I give a big thumbs down to both of those ideas. It works in socialized areas like Canada or Scandinavia, but wouldn't pass muster here, without causing a revolution.

As far as income tax goes, my vote would be Flat Tax all the way; I oppose the rich being disproportionately taxed, always have.

In order to fund health care, I think Military spending should be tapped. This country spends far too much on Military, and ...it's not necessary..really it's not despite American hysteria, paranoia, and over-reaction about terrorism and "what if" scenarios. What are we still doing with bases in Germany for example?