Comment: I feel the present tax system is in dire need of reform because: 1. The present tax code is far too complex. My CPA firm freely admits that even they don't even fully understand all aspects of the present code that relates to me and my various business interest. The Internal Revenue Service is constantly wavering on important details of the code because even the most highly trained Internal Revenue Service Agent does not know many of the aspects of the code. The present code is set for frustration and confusion. Example: I , with the assistance of my CPA and Attorney have ben attempting to settle a small tax claim that The Internal Revenue Service claims is due. This particular claim by the IRS has never been a debt that I owed. Even though we have provided substantial, definitive and positive proof that i never owed the money, liens still appear on my credit report and properties. The IRS Agent agrees that I don not owe the debt, but has been at a loss as to how to correct the problem. He says that with a name like mine, Donald Smith, he is surprised this doesn't happen more often. Even if I paid the few dollars, it would still appear on my credit report. Remedy: Congress should appoint a settlement committee made up of IRS personnel and private citizens in equal numbers to review, mediate and settle outstanding tax debts and or claims prior to legal action being filed by any party. A one time moratorium should be issued on any tax claim or debt for a set period not to exceed 180 days from the date of the moratorium for the purpose of immediate settlement and or relief to be granted to all taxpayers who have actively and properly filed their tax reports. Those who have not filed their reports would be allowed to file within the 180 day time frame with immunity from prosecution and penalty, provided they have not committed intentional fraud. 2. The present tax code is unfair to honest, hardworking, saving Americans who manage their money. Everyone should pay their fair share of income taxes. Example: If I save my money, out it into a Bank and collect the interest from the bank on my savings, I must pay tax on my Income, then tax on my savings and again on my interest. If I pay my home mortgage off in full, I no longer have a tax credit, instead I have to pay tax on the equity and value of the home. I pay tax twice. If I collect a dividend from my corporation for being profitable, I pay tax on the dividend. I pay tax on the corporate income, tax on the corporate profit, tax on the income derived from the corporation and pay tax on the dividend. Remedy: Flat tax . Everyone pays the same percentage of tax. If I make 100,000.00 dollars of corporate profit, I pay 10 % tax on any income, no loopholes. If I am Chrysler Corporation or Mobil Oil Company and I make 1 Billion dollars in corporate profits, I pay 10 % tax on the profit, no loopholes. By the same token, If I make 8,000 dollars of personal income, I pay 10 % tax, no loopholes. Low Income Citizens get enough assistance from the Government through educational grants, Public Assistance Programs, Social Security Programs, Multiple Social Programs, (too many to mention here) That OUR Government can no longer afford off of the backs of the working class. We can file our taxes on a 3x5 postcard. Secondary Remedy: Implement a National Sales Tax. A Citizen shall pay tax on every thing they buy, excluding Food & Private Residence and or land to contain Private Residence. 3. The present code distorts every decision we make, from birthing decisions as to how many children we have, marriage decisions with the marriage tax that no one understands to the all important estate decisions and how we will be forgiven by our heirs if God Forbid we manage to acquire enough to give them upon our death that they will be super taxed on and end up having to sell their home to collect 200.00 dollars of inheritance. Remedy: See # 2 above. 4. Goals for the panel to achieve and or recommendations for reform. Goal # 1. Generate additional capital for the United States so that we can better our economy, better protect our citizens at home and abroad, build a stronger more efficient nation where the dream may be alive for generations to come, while at the same time reducing the load of taxation from the few to all who participate in the abundance of our nation. Goal # 2. Simplify Taxation so that all may understand and therefore be willing to contribute their fair but equal share of the taxes. We Americans are a Proud Lot. We really want OUR Country to be the greatest place in the entire world. Each of us takes personal pride in our achievements, our families, our homes, our heritages and varied cultures. An American will quickly tell anyone, foreign or otherwise...This is MY Country and we will defend her for all that is in us, every one. We won't even start a ball game until and unless our song has been sung and Old Glory has been properly saluted. We want to contribute to our nation so that she may thrive for our children and many generations to come. Please give us a chance...End the Nightmare....... Sincerely, Donald Smith |