Subject: Tax Reform Comment: o whom it may concern: I'm told that you're seeking citizen recommendations on the tax code. Here are mine. Simplify the tax forms. I'm a patriot, and if my country needs cash, I'm happy to contribute my share. I just don't want to go through endless headaches and paperwork in the process. I'd like a graduated, progressive semi-flat income tax. That is, everyone would pay a flat percentage of his income, but the exact percentage would rise as income does. As a corollary, eliminate or tightly restrict overseas tax shelters. If someone--individual or corporation--resides or earns money in the United States, he should have to pay taxes. I'd recommend only a few exceptions to these rules. 1. Taxpayers should be allowed to deduct charitable contributions. 2. People who earn the lowest incomes would pay no income tax at all. 3. Veterans of active military service should pay no income tax for every year that they served. If a citizen spends two years on active duty, his first two years after his service should be free of income tax. If he spends six years in the service, his first six years as a veteran should be tax-free. I'd also recommend a national sales tax, but I would not levy it on the basics of human life: food, clothing, shelter, and health care. Tax everything else, but not those items. In economically depressed areas, I'd exempt the tax altogether. If a consumer makes a purchase--any purchase of any product or service--in Appalachia or south-central Los Angeles, he would pay no sales tax on that transaction. I realize that these recommendations can involve plenty of complexities. If a veteran who served two years in the military files taxes jointly with his non-veteran wife, how much of their income is taxable? If a business accepts payments via a post-office box in an economically depressed area, should the business operate free of sales tax? And so on. Nevertheless, I think that these recommendations make a good start. Thank you for listening. David Seidman |