Subject: simplify tax code Comment: It is easy to design a simple tax code that is fair, but in order to do it properly we have to start at the beginning and scrap the entire existing fiasco. There have been a number of good ideas put forward that are based on a flat tax with a floor that protects the poorest of our country from paying any tax. If we set up a progressive rate that increases as the income increases, that becomes more complicated and really should be indexed for inflation to be fair. A flat tax of 15% on all income with no deductions would bring in more than is coming into the government using the present system and would be simple and fair. In addition a sales tax of 2% should apply to all items except food, education, and medical needs. A system that refunds an amount yearly based on income to the poor would insure that the tax was fair. The numbers can be negotiated, but adding deductions to the code would put us right back where we are today. The problem is not in the design of the new tax code; a number of simple systems would work. The problem is getting the politicians to support it and educate the public as why it is needed. There are a lot of very powerful people and companies that benefit from the current complicated code and their lobbyists will descend on Washington with bags of cash to try to stop any change. They will also run powerful ad campaigns to convince the general public that a flat tax is unfair and a bad idea. If the President wants to simplify the current tax code, he must be prepared for a long and difficult fight. |