Subject: my thoughts Comment: As you may know Allan Sloan wrote an interesting article for Newsweek: http://www.msnbc.msn.com/id/7476724/site/newsweek/ I sincerely hope his predictions are wrong. Below are some of my ideas for improving the federal tax system: 1) Keep the progressive income tax system. 2) Do away with the AMT. It is confusing, frustrating, and totally ridiculous. If you want to tax the ultra rich that have millions invested in municipal bonds (like Ross Perot), then tax municipal bonds. 3) Allow everyone to deduct charitable contributions. Add it a top line item on the 1040 and 1040EZ forms. Americans should be encouraged to support the causes they believe in and the federal government should encourage them. In fact, it would be really cool if the federal government matched the contributions. 4) Establish a progressing tax model on investment income. Lower income folks could really use the break. Upper income folks don’t need it. Do the same for mortgage interest. 5) Do not impose a national sales tax. You’ll just make it harder for low income families. Instead work with the states to create a flat sales tax for all 50 states. Too many people order products and services from out of state. With the current system, states and local governments miss out on revenue potential. If every state charged and collected the same sales taxes for products and services bought in or out of state, the state governments would benefit. The state of WA does not tax services. This is insane. The US is moving more and more towards a service based economy. We must tax services as well as goods. 6) Enable folks to write off their local and state income and sales taxes. It is grossly un-American to double tax hard working folks. Thanx for taking the time to read my note. Robert Corrington Seattle, WA |