Subject: BIFURCATED INDIVIDUAL INCOME TAX STRUCTURE
Comment: Dear Panel:
I realize this is unlikely to be a unique idea, but please consider recommending a bifurcated tax structure consisting of a national sales tax with a relatively low rate(perhaps 5%,)so that everyone pays some federal tax, coupled with a flat income tax rate applicable to incomes exceeding a relatively high threshold( perhaps $100,000). Eliminate ALL the deductions credits, exclusions, etc.,which constitute the majority of the complexity in the current Code.
Obviously, business income(both proprietorship and corporate) will have to allow reduction for legitimate business expenses, which limits the potential for simplification in that area.
Thanks for the opportunity to provide the suggestion and don't be afraid to recommend something bold, i.e., simple. Also, don't overlook the softening effects of a 3-5 year "phase-in" on the winners/losers problem.