Subject: Tax Reform Comment: To The Honorable Connie Mack, Chairman Advisory Panel on Tax Reform The White House 1600 Pennsylvania Avenue, NW Washington D.C. 20502 Attached is my suggestion for Tax Reform. < Sincerely, Steve A. Jones 04/12/05 Monetary Exchange Tax By Steve A. Jones Objectives: The finance of all United States Governmental operational cost. Replace the present Income Tax System with an equitable system of taxation of all individuals using the United States Governments monetary services. Proposal: Taxation of all monetary exchanges. Example: An employer’s would be taxed a fixed percentage for the monetary exchange on the payment for employee’s services. The consumer would be tax at the register a fixed percentage when payment is made for products or services. Pros: An individual social, political or intellectual status would be isolated and independent for the United States Taxation System. Taxation will be directly linked to the wellness of the United States economy. Refunds would only be applied to funds in excess of the yearly budgetary requirement plus a saving reserve. Cons: Possible loss of individual’s monetary privacy. Due to the direct link to the economy, short-term loans may be needed to average operating expenses. However, a saving reserve made during good economic conditions could minimize the short-term loan requirement. Future legislation could exclude individuals or groups from the system for political and/or monetary advantage. Options: Promotion of “Good” exchange: Low or no tax rates could be applied toward “Good” monetary exchanges such as IRA savings or Home Loan payments. Demotion of “BAD” exchange: high tax rates could be applied toward “BAD” monetary exchanges for products such as Tobacco and Alcohol. Monetary exchanges from undisclosed exchange could be taxed at excessive rates to deter individual involvement (such as for “Illegal Drugs”, or the financing of Terrorism). Conclusion: The Monetary Tax System would be equal to all United States citizens and can be phased in at a gradual rate such as 1% per year. The Income Tax System can be phased out at an equitable monetary rate with a specific deadline date to assure closure. |