Subject: citizen comments on replacement tax system
Comment: Please see attached MS word document in response to panel request for citizen comment.
Please consider a consumption tax as your first replacement option to the current tax system that should be abolished because a consumption tax:
1. increases productivity that allows US to keep inflation contained and to be more competitive internationally by redirecting unproductive tax preparation time and effort to more productive output
2. discourages consumption in favor of badly needed domestic investment
3. encourages greater honesty and moral ethics for this and future generations by eliminating much of the now socially accepted “tax avoidance, if not evasion” commonly bantered about for even young ears to hear
4. increases respect for the government rather than fear and loathing
5. increases a more efficient allocation of our limited capital based on true economic value rather than artificial tax savings returns
6. installs a more efficient Federal collection and consistent cash flow
7. can be more readily and timely adjusted to accommodate economic and fiscal needs
8. allows lower international prices to help US regain international trade balance by not being a cost to the producer or exporter that must be passed on in the price to the foreign buyer. I f we do not correct the trade imbalance soon, the US will lose its standard of living and relative economic, political and, eventually, its military position in the world.
A flat tax would accomplish some, if not all, of the above.
Either a consumption tax or a flat tax would be an improvement over the current tax system.
Steven Bolten, Ph.D.
April 25, 2005