Subject: Simplified Tax System Comment: Single taxpayers first $20,000 tax free,joint taxpayers first $30,000 tax free. 15% tax rate on earnings above these levels , but less than $80,000. 25% tax rate on earnings $80,000 to $200,000. 30% tax rate on earnings $200,000 to $300,000. 35% tax rate on earnings $300,000 to $2,000,000. 50% tax rate on earnings over $2,000,000. Social Security benefits included in earnings. No reduced rates for capital gains or dividends. $3000 maximum capital loss annually acceptable. Phase out all tax free income from municipal bonds over 20 years, 5% of these earnings included in income in year one, 10% in year two, etc. No deductions allowed, but provide a 25% tax credit on all receipted charitable donations. Adjust the tax rate schedule annually to reflect cost of living. This proposal is fair, balanced and simple. Thank you. |