Posted: Apr 26, 2005 By: Robert W. Koehler

Subject: Comments on Tax Reform

Comment: Please see the attachment for my comments.

Robert W. Koehler

Robert W. Koehler 168-28-2848 As An Individual
1506 Plaza Drive, State College, Pa. 16801
April 26, 2005

The following suggestions pertain to aspects of the current tax system that are unfair:
1. There should be NO joint filing. Single people complain that they are disadvantaged because they kick in to a higher tax bracket at lower income levels than “married filing jointly.” Married people complain that they are faced with the “marriage penalty.” So everyone should pay tax on what they earn. Those who have income from joint property would decide which taxpayer would have the social security number attached to that income.

2. “1” above would preclude having separate tax schedules for “single,” “married filing jointly,” or “head of household.” These are grossly unfair to single people who are forced to subsidize other life styles. Marriage is fine; but it should not reduce one’s obligation to support the government.

3. There should be one large exemption so that those under the poverty level would not be forced to pay tax.

4.. There should not be a separate tax rate for dividends or capital gains. Dividends should not be taxed to individuals if the corporations have already paid taxes on the earnings.

5. Capital Gains should be indexed to eliminate the effects of inflation. Tax would be paid on the “real” gain at the ordinary tax rate.