Comment: New tax system should be very simple so that billions of hours not not spent in preparation of the tax returns. 1. Flat income tax rate of 25% on income to $500,000.00. 2.Flat income tax rate of 30% on income above $500,000.00. 3.Base exemption of $10,000.00 for single. 4.Base exemption of $20,000.00 for married. 5.Base exemption of $30,000.00 for married with children. 6.Home mortgage interest deduction to be $0.00. 7.Charity deduction to be $0.00. 8.Business and corporations to have tax rate of 25% on the income. 9.There should be no investment tax credits allowed. There should be no depreciation allowed. There should be no property tax deductions allowed. There should be no state income tax deductions allowed. 10.This should increase tax revenues, which should be used to retire the national debt. 11.Once the national debt is paid, the tax rate could be reduced by 1% at a time. I think most of us will be happy to pay slightly more taxes to the government and go about our business to generate more income. This plan should eliminate all tax saving scams and schemes which feeds a lot of accountants, tax attorneys and tax advisors. This will eliminate the temptation of saving tax by taking excessive and abusive deductions. This plan should free tax agents to go after people who do not report income. Surinder S Dang |