The real estate industry is up in arms over a proposal from President Bush to replace the IRS and the income tax system with a national sales tax. The nation’s homebuilders and the realtors who sell their homes are terrified of any system that would replace the income tax with what’s known as “consumption based taxes.” What is that? Some economists believe that the U.S. economy would be stronger if people were taxed only on what they spend, not what they earn. The idea is that it would encourage a lot more saving and investing if people had to pay a 30 percent tax every time your bought something. Clark thinks there would be a great benefit to having a national sales tax. But there is always a law of unintended consequences. Sometimes what happens is unexpected and out of our control. The real estate industry is worried that people would stop buying homes if they have to think about a consumption tax when buying a home. Clark is also a fan of the flat tax system. Our current national tax system is so confusing and backwards that even the most simple return can have mistakes. In addition, there is a huge burden coming for middle class taxpayers. It’s called the “alternative minimum tax,” which requires that you run your tax return twice and you pay whichever tax is higher. Something needs to change. We’ll keep you posted on what happens.