Posted: Apr 25, 2005 By: Robert Letourneau

Comment: Tax reform proposal:

1. The proposal provides for an income tax base for individuals and a
consumption tax for businesses.

2. Exemptions for individuals include a dollar for dollar deduction for
payroll taxes paid by the individual, reduction in gross income for charity
deductions and a reduction in gross income for interest on the primary
residency home up to $25,000 of interest expense per year (the $25,000 to be
index by CPI), and a reduction in gross income for dividends.

Exemptions for businesses include a dollar for dollar deductions for
payroll taxes paid by the business for employees, a deduction of 100% on
export sales.

3. Tax rate for individual income range:
0-50,000 10%
50,001-100,000 25%
100,001-500,000 30%
500,001+ 35%

Tax rate for business would be set at 15% for added value


4. Tax collections for individuals would used the existing method of
deductions from pay, quarterly estimates and final payments due by 4/15/xxxx

Tax collations from businesses would be due quarterly with a
reconciliation of value added calculations

5. Deficits: Congress would be required to balance the budget over its two
year term by indexing the above tax rates to cover any deficit with 50% of
the deficits covered by individual taxes and 50% by the business value added
tax unless Congress declared that the USA was in a state of war.



This proposal provides a simple progressive income tax for individuals, 4
brackets and 4 types of deductions. It provides a simpler tax for business
with 1 rate and 2 types of deductions.

Thanks for considering my proposal.

Robert J Letourneau
tel 513 509 8256
email rletourneau@cinci.rr.com