Posted: May 22, 2005 By: Carolyn Schindler

Subject: Tax Reform

Comment: A national sales tax and/or VAT would be fairer because it would tax all the illegal, under-the-counter payments, and other small enterprizes.

Families should not have to pay $100 to get their own money back because they are so intimidated by the IRS.

A flat tax would most likely eventually end up where we are now. Every year some group would want an exemption or break for some reason.

Some problems with the current code:

The Earned Income Credit: This is unfair because it does not factor in support money, interest income, or other income. Two mothers could make the same amount of money but one gets $100 a week and the other $300 a week. They both get the same amount of taxpayer money in the form of an income credit. This law also encourages shacking up. If momma gets married, she will lose her $5000, so she just lives with the guy. Our government is enabling the break down of our country's morals. This also encourages people not to work on their marriages.

I realize there is a down side and some women really need out.

Men are forced to pay support or are jailed. However, they do not get an credit or deduction for the support that they pay. For some, it can be half of their income. This forces them to move in with another women who is receiving support just to live. Mothers are not required to account for how the support is spent. Fathers need to keep clothes, a place to sleep, and pay insurance, etc.

The code is so complicated that it can be difficult to get the same answer twice from the IRS.

The paperwork is so overwhelming that it encourages some small businesses to pay under-the-counter, especially seasonal workers.

It should encourage savings and perhaps better care of belongings so as not to have to replace as often.

The elimination of record keeping for charities other than accountability of how they spend the funds.

The phase-in could be delicate so as not to upset our economy.