Comment: The federal government has no way of knowing how much revenue it is losing to the underground economy, both from the lost revenue of income tax and the social security tax of self-employed individuals. It would behoove us to look at imposing a sales tax on all items including food,but not on prescription drugs. The states can collect the tax which they collect anyway and forward the amounts collected to the federal government monthly. The IRS can audit the states for compliance. Every 12 months families can file a form with social security numbers of family members on it and apply for a refund determined by IRS yearly of sales tax paid by a family. This would eliminate the black market for food. We must find away to collect revenue from the underground economy which is getting bigger. Only tax individuals on what they spend not on what they earn. The additional savings would help lower the rate on mortgages. We need a combination plan which should be instituted over a period of years so the plan can be fine tuned. Sincerely Yours, Charles Kropp Retired Tax Preparer Rockford,IL 815-633-3089 |