Posted: Apr 24, 2005 By: Philip Degenhart

Comment: Thank you for taking the time to consider my thoughts.

The tax code should be simple and not include any deductions. It is up to
each individual to determine what, if any, investments they need and the
government should not be subsidizing them. I favor a three step flat tax
system, on income, similar to the one outlined below.

Step 1:

Individuals making less than $20,000.00 per year.
Couples and/or Head of household making less than $40,000.00 per year.

Tax Rate: 0%

Step 2:

Individuals making between $20,001.00 and $150,000 per year.
Couples and/or Head of household making between $40,000.00 and $300,000.00
per year.

Tax Rate: Fist $20,000.00 or $40,000.00 = 0%
Above $20,000.00 or $40,000.00 = 18%

Step 3:

Above the levels outlined above the tax rate should be 28%

As stated earlier there should be no write offs, not even mortgage or
children. The only distinction should be with or without dependants.

FYI - This will increase my personal taxes but it is worth it to make the
system simpler.

I also favor increasing the tax collection in conjunction with the
simplification plan. The only requirement would be that the excess tax COULD
NOT be used by the government and would be used to reduce the deficit. Once
the deficit is paid off, the rates could be re-evaluated based upon current
data.

Thank you again.

Philip P. Degenhart
514 Newport Dr.
Lompoc, CA 93436