Subject: Prosperity by Tax Reform Comment: There are plans to reform the US tax code, and make it simpler but still progressive. My suggestions do this, and aim to increase prosperity. 1) Raise the standard deduction to $80,000. This return to the original intent of the 1862, 1893, and 1913 Income Tax laws would vastly simplify income tax returns for the majority. 2) End the Federal tax exemption on state and municipal bonds (see Article XVI). This creates tax-free money for the rich and powerful who force state governments to spend and borrow and then raise taxes. Then abolish the Alternate Minimum Tax since it won't be needed. 3) End the Federal tax exemption on dividends. Income from all sources should be liable for taxes. 4) Raise the top marginal rates to where they were during the Eisenhower administration. Those were prosperous times when people did not suffer from jobs being shipped overseas. 5) Only property held for seven years should benefit as "long term capital gains" on Schedule D. 6) Install a 10% surtax until the Federal Budget is balanced and interest payment are less than 5% of the budget. "Only the income tax can't be transferred to consumers" said Senator John Sherman (Rep-Ohio) in 1893. Try the above for ten years and see the improved prosperity for the American people. R. A. Sobieraj |