Subject: Fw: tax reform Comment: ----- Original Message ----- From: Glenn Schoch Sent: Tuesday, April 26, 2005 10:31 AM To: USA GOV Subject: tax reform Gentlemen: Here are a few tax reform proposals that should be implemented. 1) End the so called tax free exchanges of property that allow rich and sophisticated investors to defer capital gains taxes indefinitely. The tax is now 15% on long term gains. Eliminate any new tax free exchanges and require that the taxes on all deferred gains be paid within a five year period. 2) End the use of the last-in, first out (LIFO) inventory method immediately. The LIFO inventory method is nothing but an interest free loan to businesses. All business entities should be required to pay the tax on the LIFO reserves over a five year period. 3) Eliminate any social security or medicare deductions from taxpayers under the poverty line but give them credit for their wages for the purpose of receiving benefits. Tax individuals with earned income over $300,000 and/or unearned income of $25,000 at the basic social security and medicare tax rates now paid by the majority of taxpayers. 4) Reform the tax code to allow all businesses to operate on a fiscal year basis. This would be an enormous help to the Internal Revenue Service in spacing out the work load over the year and also to tax professionals who prepare tax returns. Very truly yours geschoch@hotmail.com |