Sen. Ted Cruz’ call for a flat tax rate and abolishing the IRS would cause an economic disaster. I have been a real estate broker since the ’70s. If a flat tax is in place, homeowners and buyers would no longer be able to deduct home loan interest or taxes on their income tax forms. Cruz says you would be able to do your tax returns on a post card.
There would be a lot less interest in purchasing a home. So people would probably continue renting or staying in their present homes.
Many real estate agents would no longer be needed, and since there are hundreds of thousands of agents in the United States — most are women — they would be out of work.
If buyers are not buying, there would be little appreciation on homes. IRS employees would be out of work. Builders, subcontractors and suppliers would be hurt.
I, and many more like me, would have to pay more taxes on the 10 percent flat rate.