Subject: Tax Reform Comment: Dear Panel Members; As a former taxpreparer I believe that I can empathise with the daunting task you are facing in attempting to recommend a saner course for our nations tax laws. Surely you are by now aware that any restructuring of our tax code will be met by strong opposition from some our nations most powerful self-interest groups (ie. the ABA,IRS CPA's etc.) Despite these obstacles I feel compelled to add my thoughts to this process with the faint hope that you may find them useful. First; I believe that a flat rate tax would be the fairest method for continuing our current practise of taxing ones' right to earn an income in this country. Taxes, such as the proposed national sales tax are inheirently skewed in favor of the highest wage earners who have the luxury of not spending a greater portion of their income on the necessities of life. Second; much of the bluster about losing our precious deductions for such things as home mortgage interest could be rendered null & void by using a simple adjustment to income for such things as mortgage interest which the government wishes to encourage. This would be similar to our current system which starts by determining gross taxable income before allowing personal exemptions and certain credits to be deducted before arriving at "adjusted gross income" for tax purposes. By limiting such adjustments to the very minimum, and adopting a flat but indexed amount for such adjustments, our tax code would become not only simpler but more equitable to the disadvantaged taxpayers. This too would eliminate the need for some of the more contrived provisions that exist in our current tax code such as the earned income credit which seems to do more for tax preparation companies than our poor. Third; in considering a model for a flat rate income tax you may wish to look at the Illinois State Income Tax for guidance. Anyone who can read and write can complete this form, though it would require some tweeking as it starts with ones' federal adjusted gross income level for it's calculations. In closing I would like to wish you the very best in your endeavor. The cause you serve is noble. The foes you face are many and powerful. May god be with you. Wayne Schutte 205 Jennette Place Franklin, TN. 37064-3046 |