Subject: simplifying the tax code Comment: Sorry, the first time I sent it in EML. Here are my suggestions for simplifying the tax code. The plan maintains a progressive schedule so that those with higher income pay at a higher rate. There is still an allowable deduction for charitable giving and home ownership. However, all other deductions are eliminated. If we all pay taxes on our gross income, rather than net, the rates will be very low, even for those in the highest brackets. Thank you. Elaine Herold (310) 377-6045 Rancho Palos Verdes, CA 90275 the-herolds@cox.net • All income should treated the same regardless of origin for both individual and businesses. • $10,000/ adult, and $5,000/child for up to two children should be deductible from gross income of a family. • Up to 10% of gross income donated to charities should be deductible. Donations of books, paintings, etc. to libraries, museums, etc. would be based on inflation since time of original purchase or acquisition, NOT on current market value (ex: A painting acquired for $10,000, but now worth millions on the open market would not earn a tax deduction to the owner of millions, but rather the value would be recalculated based on inflation for the years owned) • Up to (20%?) of gross income spent on home ownership (mortgage and state/local taxes) should be deductible (the percentage allowable should be based on average cost/average income) • After taking the limited deductions, income for individuals and families should be taxed at increasing percentages in $10,000/adult increments starting very low (5%?) and increasing to (25%?) for those earning over $250,000/year/household. The rates should be determined by calculating what the government needs to run efficiently and working backwards after calculating gross earnings minus charitable and housing deductions. • Business rates should be much lower than those for individuals as they will no longer be permitted to deduct 'expenses'. I suspect that if businesses pay as low as 2-3% on GROSS income it will be as much as they currently pay based on net. |