Comment: Gentlemen: I am a 75 year old semi - retired CPA/Tax attorney and have been in active tax practice for fifty years. Here are my comments: 1. Estate tas repeal - This makes absolutely no sense to me. Taxing the very wealthy's heirs should be maintained. I have no problem with increasing the applicable credit amount to eliminate the estate tax on a number you determine - say $4,000,000 or $5,000,000, but in this era of high federal deficits, see no reason to completely repeal the tax. The only justification for repeal I have heard the administration make is to eliminate forced sales of bisinesses and farms to pay the tax. Well, in myfifty years of practice, I have never seen an estate forced to do that!. And when I attend the Heckerling Institute on Estate Taxes in Miami Beach, each year, when asking that wqueston to other tax professionals at breakfast and lunch, no one else has either!. There are relief provisions in the current law that work, I remember the short period about 25 years ago when we were faced with the repeal of carryover basis. It was a nightmare, and reinstating it if there is a repeal would just make income tax preparation more difficult. 2. Income tax simplification, A Alternative minimum tax - this parallel system is too complicated. Suggest the deductions not allowed for AMT purposes be adopted for regular tax computation purposes and the regular rates be lowered. Alternatively, eliminate the AMT and put a limit on the home mortgage interest deduction of say $25,000 per annum, lower the limitation of AGI for charitable contributions to 30%, and increase the exclusion for medical expense deductions to $10,000.. B. Eliminate the kiddie tax. How much additional tadx is collected from this veryh complicated section? My feeling is that most people have put the money given to the kids to pay for their college expenses into Sec. 529 plans, which are tax free anyway. I am very concerned with the deficit and the borrow and spend atitude of the present congress. The tax reduction should not be made permanent. I am also concerned with the potential drying up of charitable contributions if tincome tax rates get too low and the estate tax is eliminated. Just think of the additional spending required from the public sector if charities could no longer do their wonderful work. Robert Dorfman rolendor@earthlink.net EarthLink Revolves Around You. |