Subject: Tax reform Comment: Attached are my recommendations for tax reform. Respectfully, Don Dixon 919 967-7133 The capacity to help make the world kinder and at the same time more efficient is a true measure of wisdom. - D.D. I am in favor of a combination of the following tax concepts. Considerations for each of the concepts are also given. 1. A federal sales tax a. Exclude food, rent, medical services, prescriptions, insurance premiums, school tuition, sale of residency, and materials used for resale b. Maintain rate as low as possible considering there are two other tax programs to obtain income from. I have lived in the Bahamas where the import taxes, which work very similar to a consumption tax as most items are imported, stymied expansion of the economy. In order to prevent an economic slowdown, it is very important to keep the sales tax low c. Do not include items that would normally be considered as a capital gains sale 2. A flat rate income tax a. Starting at 20% above poverty level b. Maintain rate as low as possible considering there are two other tax programs to obtain income from c. Do not include Medicare payments or Medicaid subsides as income d. Do not include items as income that would normally be considered capital gains 3. A business tax model similar to the one we currently have a. Eliminate loopholes that have allowed extreme levels of tax avoidance b. Maybe consider an Alternative Minimum Tax for businesses c. Keep capital gains taxes as low as possible d. In order to keep the economy moving, offer a investment credit 4. Eliminate or reduce the inheritance tax to 15% or less 5. A capital gains tax of 5% Don Dixon 919 451-3375 cell 919 967-5360 fax Truth resides on a slippery slope, for emotions, beliefs, and desires alter one's perception of it. - D.D. |