Comment: http://www.latimes.com/business/investing/la-fi-perfin24apr24,1,6229669.colu mn?coll=la-utilities-business-money&ctrack=1&cset=true I've just read the above column in the LA Times, and here is my suggestion, in bare bones form: Institute a flat income tax, such as the ones recently introduced in Russia and Ukraine. Apply a single rate to taxpayers of all incomes and to corporations as well. Set the rate such that it is revenue neutral. Eliminate all deductions and credits so that, in essence, the tax return can be filled out in minutes on a postcard-sized form. Maintain progressivity of the tax "rate" by rebating to lower-income taxpayers X amount of tax paid. To make the transition gradual, make it voluntary. Individuals and corporations that wish to live under the current tax system should be given up to, say, 10 years in which to switch over to the new. That should give time for the housing industry and housing prices to adjust to the elimination of the home mortgage deduction, give H&R Block and similar companies time to move into new business, and generally ease the shock of transition for all concerned. Finally, begin the process of amending the Constitution to require a supermajority vote of Congress to introduce any new deductions, credits or similar loopholes that would undue the good of the reform. To deal with changing needs for revenue over time, however, permit the raising or lowering of the base tax rate itself according to the current voting procedure. Regards, Richard Smith Falls Church, VA |