No. of Recommendations: 1
So if a flat tax is imposed, then pretty much all of our financial planning is for nought? Tax deferred and regular investments will pretty much be the same thing, and all those people who have paid taxes throughout their lives, saved up in IRAs, would suddenly find that in retirement that they their consumption taxes on everything own would quadruple from their expected retirement sales tax rates.

When people talk about a flat tax, they are almost always talking about a flat income tax, which means that there is just one tax rate applied to taxable income rather than several. There would still be income tax issues to deal with, although they would change slightly depending on the specifics of the particular system implemented.
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