Ramesh, that’s fairly easy to do. Back in the 1980s the Reagan administration sharply reduced tax deductions for mortgages and other real-estate linked tax shelters. This move certainly played a very significant part in the real estate slump that followed over the next few years, which on some measures was (I seem to recall) the worst in half a century. I’d call that a crater. If you think about it, this should not be a surprise. Increasing the net financing costs of an investment (which is what eliminating/reducing tax deductions would do) must reduce its price. The only question is by how much.

On the other point (the AMT as a flat tax), he’ll have to speak for himself, but I suspect that when Jeff Taylor suggested using the AMT as a crude flat tax it was not his ideal solution. He was merely making use of the tools that he had, so to speak, at his disposal.

Finally, I’m not clear what you mean by “investments in children” but it sounds like big government sticking its snout where it has no business being – and that’s not something that usually appeals to flat taxers.