Subject: Comments for Pane Comment: Response to request for comments by the Federal Tax Reform Panel on Feb. 16, 2005 Walter E. Minto III Individual/Small Business Owner 126 South Bellevue Ave. Langhorne PA, 19047 215-750-9258 chipminto@comcast.net March 1st, 2005 Individual Submission to Federal Tax Reform Panel As a small business owner and individual, the present tax code is incomprehensible to me. Each year, I live in fear that I have unwittingly made a mistake that will trigger the wrath of the IRS. I read and hear about horror stories of individuals whose whole lives are torn apart because of the actions of the IRS. I am not a tax evader or tax cheat, yet I know that should I have made a mistake, I will be assumed guilty and have to prove my innocence, I will not be assumed innocent. Each year I am burdened with the tax of trying to figure out the nuances of the current year’s code. What deduction is good this year, what write off do I have available, do I owe tax on this or that? Because I cannot comprehend the wording of the code, as I am sure many Americans cannot, I am forced to use a software program to file my taxes. Even then though, it is confusing, and seems to me to be arbitrary. Tax time to me is a long and arduous process that I fear. I know the stakes, and I know that if I mess up everything I have worked for could be taken away. My personal stress level is through the roof this time of year. The tax system is unfair in many ways. The first thing that bothers me above all else is that when I was an employee, the IRS withheld money from me every week. Many people are happy each year if they get a refund, not me. Why does the government think it is right to hold money, that even under the present tax code and all its complexities, is not theirs? I earned that money through my work, and while I am happy to contribute to society and am a patriotic American, I can do a better job handling my money then the Government can. The tax system also punishes those of us who choose to work hard and make more money. The more money I earn, the more I have to pay in taxes. To me, that sounds more like something that would be coming out of a communist country, not the country that is supposed to be the light of freedom to the world. In addition, it seems that the super wealthy are able to find many loopholes that are not evident to the common citizen. I do not begrudge them a dime, and if I was super wealthy and could afford a fantastic accountant, I too would employ every loophole available to me. It hardly seems fair to me however, that because I can’t afford that super accountant to find the right deductions and loopholes for me and guide me through my finances, that I end up paying taxes I do not owe, simply because I am not aware of the loopholes available to me. You have asked for specific examples has to how the tax code distorts specific individual and business decisions. I ask that you look no further then the weekly paycheck that is taken home, or the lost productivity that happens at small businesses around the country. Should the American worker have less of a tax burden, they would have more money to save and invest in the future. Because the Government (State, Local, and Federal) takes so much of our income through various taxes, the average citizen is living on only 50% of what they earn. If the code was simplified, and the worker had more money to invest in the future, our economy would become more stable. Younger workers like myself would be able to plan and save for the future, instead of relying on the government in the future for our retirement. If small businesses did not have to pay such a tax burden, they could afford to hire more workers, adding more productivity to the economy. Instead of having to pay such a high rate into social security and payroll tax, that money could be used to hire more personnel or to pay higher wages, all of which helps the economy. I can only hope that this panel does not just rewrite the existing code, making it more complex. I hope that for my sake, and for the sake of my daughter that this panel recognizes the historic position it is in. That by throwing out a system that was created many generations ago and is an anchor dragging ourselves and economy down, you will free us for the future. Paying taxes should not be a burden on the citizen; it should be something that we all do to help our Country remain free and a beacon to the rest of the world. It should not prohibit personal savings and growth, nor should the average citizen live in fear that the Government will come knocking on their door one day in the form of the IRS. There are many options available to this panel, options that are far better then what we currently have. Please, for the sake of our children don’t let this opportunity to slip by. |