Subject: Tax Reform input- Comment: My opinion of the Federal Tax laws are not very good as there is a lot of room for improvement. My suggestions are: 1) Make the tax laws easier to understand, simplify the forms and instructions for individuals. 2) Consider the Flat Tax and Fair Tax, remove all the favoritism in the tax laws (special deductions, industry protections, etc...) People under a low level of income pay no tax at all - right now it is too high. Everyone else pays a flat tax or fair tax based on their level of income. The more you make the more you pay based on a flat tax rate or fair tax rate. 3) Remove tax rates that are unequal ie. the infamous marriage penalty that was fixed. For example Medical Premiums paid by employers are tax deductible for the employers and considered a benefit to the employed. Self employed or unemployed individuals are unable to deduct/expense health care expenses what so ever. I realize that in dire circumstances if your health care related expenses exceed a percentage of your gross income, some fraction is deductible, let's get real, if your health care expenses are that high, you are probably not working and being treated for something that your health care is not fully covering or is possibly terminal. Make health care expenses deductible for individuals just like businesses or eliminate the expene deduction unilaterally. Let's face it it is one of the fastest rising expenses in America and if the government can't fix the health services industry then they need to help the people pay for it. Once the governement fixes the health services industry, then they can repeal the deductions... Maybe encourage marriage and family by giving a deduction/or lower tax rate not just for dependents but for married couples as well. Look at the costs of raising kids/dependents these days, it far exceeds the dependent decuction the tax laws provide - this needs to be fixed for the poorest tax payers and graduated to the wealthiest of tax payers. 4) Force business that use foreign tax shelters to pay their fair share of taxes. 5) Force Foreign businesses that use American markets for profit to pay their fare share of taxes for use of our markets, our services, and infrastructure. Why should Americans pay the taxes that build the infrastructure that foreigners use for profit without paying their fare share? 6) Remove all political lobbying from the tax code creation process - Make It OFF LIMITS TO ANY FORM OF LOBBYING!!!! 7) Keep deductions for individuals only that encourage saving money, saving money for retirement, purchasing houses, education, and medical premiums/expenses. 8) Fix illegal immigration in the lower states bordering Mexico. You are allowing one of the biggest tax loop holes in our tax laws to occur by allowing illegals to operate, work, and act as citizens without collecting their taxes. Worse, allowing them services comparable to citizens without them paying for it and taking their income back to their homeland. Make them pay or deport them. Bring the businesses that support this to justice. Sincerely, Chris Baumann Walnut Creek, CA |