Subject: Fixes to the Federal Tax System Comment: The most pressing matter is the Alternative Minimum Tax. In order to revive the original intent of the AMT (making sure the very wealthy pay at least some minimum tax), its rate should be retroactively indexed to a base year for inflation adjustment. In its current form it denies the benefit of recent tax cuts to certain middle class families. Beyond the needed change to the AMT, we concur with those who propose a flat tax of 15% on income below $90,000 per indivduals ($180,000 per couple); 27% on incomes above that level. The only deductions should be mortgage interest on a primary home and charitable donations. |