Posted: Oct 18, 2005 By: Rick Hovdet

Subject: Tax Reform

Comment: I really like the comment that ‘We have lost site of the fact that the fundamental purpose of our tax system is to raise revenues to fund government’. There are way to many add-ons that cause confusion

Thank you for letting me address a few concerns.

1. I am hoping that any reform would address marriage penalties. There are many spouses who make the decision to stay home, and then at some point, they would like to return to the workforce either part-time or full time. When their income is added to the top of their spouses, many times going back to work costs too much. Taxation should not be a hindrance in the decision to return to work.

2. I am also hoping that any change does not impact home ownership. Many people have built their family budget around expecting that deduction. I’m not sure that making a change to that deduction would impact most tax payers in the same way. I would hate to see a mass housing sell because large groups of people need to down-size.

3. If a solution is a combined consumption/income approach, I would like to suggest that you look at making the first x amount tax free. That would address the lowest income group, and would address spouses returning to work.

4. I also have the feeling that the rich have ways to avoid taxes and that the overall tax system is not fair. I have no problems paying for the privilege of living in this great country. I do have a problem when others find ways to avoid paying their fair share.

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My comments are my opinion and not of my employer (the only e-mail address I have is the one from my employer)