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This means that removing income taxes will require a pretty significant restructuring of the tax system.
Even a tiny increase in mortgage rates can have a big impact.
But it would also make everything more expensive.
That means that inflation wont abate and that the Federal Reserve will be disinclined to easy monetary policy.
So interest rates on mortgages could stay at around 7% to 8% for a generation.
That would be a drag on home sales.
Increased Cost of Homeownership Due to Inflation
Switching to adifferent tax systemcould also have inflationary effects.
Everything from home repairs to homeowners insurance could become more expensive, making long-term affordability a challenge.
Higher consumption taxes would lead to higher inflation.
And the transition period in the tax system would likely be very choppy, Termini said.
There will be big winners and big losers in lots of different industries.
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