Subject: Individual Income Tax Reform Comment: Submission by Individual Joan C. Callis Date: April 29, 2005 Individual Income Tax Reform Suggestions: (1) Reinstate personal exemptions to ALL citizens, regardless of income. It is unfair to withhold this deduction, and the calculation is burdensome.. All citizens deserve a personal exemption. (2) Allow itemized deductions in full as calculated, without the final limitation based on income. This calculation is overwhelmingly difficult, and it must be recalculated over and over again in calculating other things, including state income tax returns. This limit, also, is unfair. I would rather see a higher percentage tax bracket rather than making this calculation. (3) For the year 2004, either sales taxes or state income taxes could be deducted as an itemized deduction in order to create fairness to people living in states that do not have state income taxes. However, in our state of South Carolina, we have BOTH a 7% state income tax and a 6% general sales tax. How does that fairness extend to residents of states like ours? Allow both as a deduction. (4) Alternative Minimum Tax: Remove itemized deduction taxes from the list of AMT adjustments. It is unfair to residents of states such as ours (South Carolina), which have extremely high state income taxes, personal property taxes on automobiles, and real estate taxes. When we deduct them, then we are subject to AMT. |