Comment: What a welcome opportunity to offer suggestions on reforming our tax system. It is truly appreciated that we have a chance to offer comments and recommendations. I have been in the financial services business for 38 years, as a portfolio manager. I have had the opportunity to watch people make decisions based on taxes rather than logic or prudence. It has seemed so unfair to have a system that has allowed for abuse, special interests, and favoritism. For the longest time, I have been advocating a flat tax, coupled with a national sales tax. Regarding the flat tax, I believe it should be 18 percent, and that the first $20,000 of income for a single tax payer, and $40,000 for a joint or two person household, should be exempt from any income tax. I also believe ALL itemized deductions should be disallowed, except charitable gifts with proper substantiation. Joining the adoption of a flat tax should be the introduction of a national sales tax, or consumption tax. My suggestion is that it begin at 2 percent, and cover everything except food and medical expenditures. From my limited knowledge, this should be revenue positive. It also taxes wealthier people more as their income and spending is greater. It does not "soak the rich", nor create a playing field that is not level, yet accomplishing the goal of having those who earn more, pay more. To me, that is truly a much fairer tax than the brackets which penalize someone for earning more with a disproportionate percentage of tax on income. Don Schwarz Senior Portfolio Manager The Schwarz Group 4047 Dixie Canyon Ave Sherman Oaks, CA 91423 818-986-5548 dlsss@sbcglobal.net |