Posted: Jun 17, 2005 By: Machine Specialties Mfg Co Inc

Subject: Repeal corporate income tax.

Comment: I believe it is essential that any tax reform plan must include repeal of the federal corporate income tax. This tax is extremely unfair in that the highest rate, 39%, applies at only $300,000, but the rate then drops to 35% and 34% far above that level. The corporate income tax causes extreme distortions in business decisions and subsidizes many luxury schemes, while applying confiscatory rates to families trying to liguidate a farm or small business. It is the corporate income tax rather than the estate tax that threatens small business. Income taxes should apply to people's income, not business income, especially since businesses do not get to vote on the issue.