Subject: IRS Tax Reform Comment: I have been in the field of Accounting for over 25 years now, holding a BS degree in Accounting and a Certified Management Accounting designation. The tax laws have gotten so complicated, that it now takes me hours to do my taxes (even with software) and I don't have a complex tax situation. I can't imagine what problems other people must be having without the educational background and experience that I have. I would like to see the US go to a flat tax rate with only personal deductions for each individual. With a flat rate and no itemized deductions, the rate could be kept to 5% to 10% of total income with taxes starting after a minimum income of perhaps $20,000 per individual and a minimum income for corporations determined by their average number of employees per year (perhaps $500 per employee). The personal deductions would help increase the individual minimum for additional family members. In this type of situation, additional deductions wouldn't be necessary for "over 65" or "blind". People making under the $20,000 wouldn't have to pay any taxes on their incomes-there wouldn't be any FIT withheld and they immediately would have additional expendable income. With lower income Americans not paying taxes, the Earned Income Credit could also be abolished, saving millions in administration costs. As for some of the current itemized deductions, such as home mortgage interest, unless you currently have a mortgage well over $100,000, there isn't enough interest to itemize anyway, so there isn't the additional tax benefit in owning a home that taxpayers had before the standard deductions went up. (With a median home price of $150,000, about half of the Americans who have mortgages can't use the interest as a tax deduction.) I also believe that non-profit status for tax reasons should be looked at far more closely than it is at this time. There are many supposedly "non-profit" organizations that are not benefiting society as much as their non-taxable status should allow them to. Their funds are used for outrageous salaries and perks instead of being used to assist those who need help most. I believe a non-profit organization should have to use at least 85-90% of their income for social services in order to keep their no-tax status (religious organizations also). Too many times I see that advertising and fund raising take up more than 30% of the monies that people donate to some non-profit organizations and some religious non-profits do absolutely nothing to assist others. I understand that CPA firms and tax businesses like having a complicated tax code because it provides them with income. I also know that no matter how simple preparing taxes becomes, a lot of people still will seek a professional for help when tax season rolls around. (It amazes me how many people pay $45 to have an EZ form filled out.) Thank you for the opportunity to give input on this income tax matter. I honestly believe the best tax code would be a simple flat tax for individuals and corporations. It would allow the lower and middle income taxpayers to keep more of their incomes, using it for savings and retirement and spending on normal everyday items that they may currently do without. The tax burden would be shifted away from those who can ill afford to pay and toward the individuals and corporations that currently pay little or no taxes. It's the middle class of society that keeps the economy moving, supporting small businesses and large manufacturers. The complex tax code is an issue that I have discussed and heard being discussed all around me for years and I believe it is an important issue to all Americans. The time has come to scrap the system we have and start over. It is too far gone to be "fixed" with more rules and regulations. As individuals we are more stressed now than we ever have been and it's time to simplify what we can in order to relieve some of that stress. Again, thank you for your time and effort to resolve this issue. |