Subject: Tax reform Comment: I am the controller of our company and a former CPA. I have dealt with numerous individual's and companies' taxes. The current tax code is way too complicated and inefficient. As a CPA, I am still unqualified to prepare our corporate tax return due to its complexity. Our company has been audited three times since I started, and there has never been a change to our tax return. These audits were very long ordeals and the agents all seemed over worked. We have also had three sales tax audits since I have been here. These audits lasted less than a week and always produced revenue for the state. Our company spends thousands of dollars and hundreds of hours complying with the income tax, but very little time and money complying with the sales tax. I believe the tax reform panel should seriously consider the Fair Tax. The Fair Tax would simplify the lives of everyone. Low income wage earners would stop being overcharged by professional tax preparers, because they are intimidated to even start preparing their own return. Corporations could spend more time trying to be profitable rather than how to pay less income tax. If a tax is simple and fair, people will be far more willing to pay it. Noncompliance is a major flaw of our current tax system. Also, the lower class will no longer be required to jump through hoops to save taxes. Upper income wage earners at our company are far more likely to participate in flex plans, 401k plans and cafeteria plans, which all reduce taxes. The lower wage earners are less likely to understand or trust these plans, so in effect, they pay more taxes than they should. I could go on for hours, but hopefully I have made my point. A sales tax is simple and easy to enforce. By giving every tax payer a credit of the tax up to the poverty level, it also becomes fair. Thank you for the opportunity to express my views. |