Comment: Single taxpayers $15,000 tax free, Joint taxpayers $30,000 tax free. 15% tax rate on all earnings above these amounts up to $80,000. 25% tax rate on all earnings above $80,000, but less than $200,000. 30% tax rate on all earnings above $200,000, but less than $300,000. 35% tax rate on all earnings over $300,000. Social Security benefits included in earnings. No reduced rates for capital gains or dividends. Continue the $3000 capital loss maximum annual deduction. Phase out tax free income from municipal bonds over 20 years, 5% of these earnings would be included in year one income, 10% the second year, etc. No deductions allowed, but provide a 25% tax credit on all charitable donations. Index the tax rate schedule annually. These approach would be slightly favorable to my wife and I, income $300,000 plus in 2004 and to our single daughter with $86, 500 in earnings. The rates might have to be a little higher to be IRS revenue neutral Thank you for allowing me to input this to you. We need a much simpler system. John L. Dampman Seal Beach, California |