Subject: Tax Reform Comment: This will be very brief as I am sure you have heard many reports of the multitude of problems with our present system of income tax and withholding. Too complex, too easy to underpay either accidentally or on purpose and the cause of huge expense to attempt compliance. Though I am now retired, the first few years of my dental practice were a matter of "rearrangeing the money" as all collections were owed to someone for loans, supplies, empoyee salaries, taxes, etc. In the third or fourth year ('73-74) I went to a seminar on practice management and tax planning. in response to a question the lecturer said it depends on which IRS district you are in. It was a revelation to me that the IRS was not consistent in its policies on a geographic basis. Later when retired and withdrawing income from my IRA I paid the quarterly estimates as advised. Then it was another revelation to find that if I had withdrawn $100 to live on, I then had to withdraw another $30K to pay the tax on the initial "income". The following year I was required to pay the estimates on the prior years "income" of $130K. It seemed that I was on an ever escalating snowball that could only end with death. By reducing expenses and frugal living we were able to get it under control before the RMD took effect at 70.5. In any case, I urge you to take a bold step and back the FairTax, as you know a federal sales tax that would end all withholding and all income tax and replace it with a consumption tax that has too many advantages to list here. I think the passage of HR25/S25 would solve many economic problems and make this country more competetive worldwide. Sincerely, Maurice R. Hamill DDS |