Comment: Dear Tax Reform Panel I offer the following suggestions for your consideration: [1] People earning less than $10 per hour should not be required to have income tax withheld from their paychecks. Those folks need that money at the time they earn it, not several months later following the filing of their tax return. [2] Likewise, given the actual cost of living these days and into the future, people over 65 and are retired, should not have to pay income tax if their annual gross income is less than $30,000. (I have an aunt, [age 98 - retired federal employee with better than usual health insurance - who still lives alone], having an annual gross income of between $18,000 and $19,000 - who is required to make estimated tax payments of $300 every quarter. That is just unconscionable!!) Clearly, the cost of living is not going to become less -- and not every family making less than $100,000 has enough left over to save for retirement or even to send their kids to college -- so when they reach retirement age, it would be nice if they received a break from the payment of income taxes when they are not earning an income. [3] Congress and all federal employees should be required to participate in Social Security just like the rest of us, instead of having their secret retirement arrangement. The federal government should have to explain why the American taxpayer should support two different retirement plans [three, if you count State retirement plans]. I have not heard one viable explanation/reason why federal employees should have a separate [superior and unequal] retirement and health care arrangement. Not only that, but the rest of us not only have to endure withholding from our earnings of Social Security and Medicare, but WE THEN HAVE TO PAY FOR THE SUPERIOR RETIREMENT AND HEALTH CARE PLANS FOR FEDERAL EMPLOYEES via increased taxes. Well, the federal employees can just start putting up with the same level of retirement income via Social Security and they may henceforth pay for their own health care out of their net paycheck. [Consider: if members/families of Congress were required to have their medical problems treated at Veteran's Hospitals, the current deficiences at Veteran's Hospitals would be immediately corrected.] [4] Which brings to mind another question: Why the distinction between "earned" and "unearned" income? It would seem to me that the taxbreaks should be given to those who earn their money via sweat and long hours -- not to those whose money is so great that it does the earning. [5] Someone should get a handle on the definition of "rich." "Rich" is earning that amount of money that allows one to easily afford to pay taxes and still have his wealth after doing so -- like the Rockefellers, Kennedys and Heinz-Kerrys. These folks have never explained just what tax law permits them to retain their [unearned] wealth. This writer does not resent such wealth -- but only having to put up with these types endlessly lecturing the rest of us on "the evil ambitions, etc. of the rich" For some economic/tax purposes, the "rich" designation begins at $70,000-$85,000 -- for others $150,000, or $180,000, or above $200,000 and others, $1,000,000 and up. We are entitled to know a clear definition of the term vis-a-vis earnings, taxes, penalties [alternative minimum tax], etc. With today's prices for basic needs such as rent/mortgage, food for the family, transportation, basic clothing and perhaps a movie now and then, when husband and wife work and earn annual salaries of $28,000 to $38,000 or $32,000 to $42,000 for gross incomes of $66,000 and 74,000 respectively, it is outrageous that they get lumped into higher income brackets -- as if over $50,000 is a lot of money. [6] A flat tax of 17% would be acceptable -- IF the taxpayer could be assured that it would not be increased with every new Congress perceiving that it needs yet more money -- facts that are not likely. Congress and all of the rest of the spendthrifts that make up the federal government are going to have to learn to make their dollars count. The American taxpayer does not have unlimited funds -- regardless of what the federal government thinks it needs. Finally, have some 8th graders make suggestions for improving Form 1040 and related rules in such a way that any nearly-educated adult can understand what is being asked of him when endeavoring to comply with income tax law. Thank you for your attention. Billie Dickey 661/ 944-0229 P.O. Box 694 Pearblossom, CA 93553-0694 |