Posted: Apr 25, 2005 By: Va8550

Comment: Several years ago, Congress attempted to streamline the tax code only for
later senators and house representatives to give special breaks to all sorts
of groups of people.

I would like to point out, however, that under President Clinton, the taxes
on senior citizens rose -- they were chosen as a target group--those middle
class families earning more than $44,000 per year would begin to have 85% of
their social security benefits taxed. That's a big tax increase. It also
doesn't look good when you see the very rich paying reduced dividend and
capital gains taxes as passed by President Bush.

When President Bush passed his most recent tax legislation he increased the
child tax credit to $1000 per child under 17. Again, this is another
assault on couples and families who had already raised their children, never
having gotten any $600 tax credit as previously passed or $1000 as Bush
later passed. Some of these couples may not have retired yet but many
retired couples would not get any of these breaks either. That's strike
number two.

Then there is the impact of the Alternative Minimum Tax. While Congress
dropped rates on all marginal brackets, it did nothing to the 26% beginning
alternative minimum tax rate. For those of us who live in high tax states
(those states also paying a higher share of the total Federal tax burden of
the country), we have to pay state income taxes (and those in places like
New York City - local income taxes) and high property taxes. In addition
for families in the 25% marginal bracket, they would be hit by the AMT
because the 26% rate is higher than 25% -- a no brainer. (Next year the AMT
exemption amount for couples is scheduled to revert to $45,000 and that
would I guess have millions of families not paying AMT now paying it for
sure).

I live in the same house I moved into in 1972. The school and local tax
rates keep rising and rising. My spouse and I deduct them from our adjusted
gross income in form of itemized deductions. We have long since paid off
the mortgage on our home but it feels like we are still paying because of
the high unnecessary burden of the property taxes. It is fine and well to
tell people well, you can always move, but that is not so easy nor should it
be. You are born some place and grow up and have roots in your community.
One should not be forced to sell one's home because the tax burden has
become too high. The tax burden needs to be reduced --- but that's another
problem -- one for the states.

I do want to tell you I would strongly object to anyone attempting to remove
the deduction for state and local taxes, including property taxes from their
income taxes.

I, as an individual, do not find completing the tax forms for income taxes
particularly difficult. I do not use any commercial software programs. I
figure it out for myself. Burdensome it is, but one needs to plan ones
finances in advance, look at the tax laws and changes in advance of their
deadlines and prepare estimated returns so they won't be surprised when the
deadline comes due.

I will tell you that I feel all this hullabaloo is about nothing --- except
for the fact that in giving the very rich tax breaks in the form of lower
dividend and capital gains tax rates, my guess is the lost revenue needs to
be made up and what better way to do it than by changing the rules and
hitting the middle class once again!

So as far as I am concerned, the only thing that needs changing is the AMT
exemption amount --- it should be kept at $58,000 for couples and adjusted
for inflation.

In addition, the $44,000 income amount with regard to seniors and social
security, should be adjusted for inflation, better yet eliminated, as the
money individuals had paid into social security for all these years had
already been taxed and now it is double taxed.

Thanks for listening to my comments.

Sincerely,
V. Fogarty