Posted: Jul 11, 2005 By: John Zimmerschied

Subject: Tax reform really must simplify.

Comment: I see that most comments still promote a "flat tax", but then they throw in deductions and all the complications we have now. Worthwhile tax reform requires getting rid of all those deductions and special interest loopholes. Everyone should pay income tax, not just those over $50,000 per year, so start with a low tax rate and NO DEDUCTIONS and gradually increase the tax rate with income. And no deductions means NO MORTGAGE DEDUCTION, NO CHARITABLE DEDUCTION, NO CHILD DEDUCTION, NO HEALTH INSURANCE DEDUCTION. Charities will do just fine without coercion from the government, and they will be more honest.
One of the most critical factors is to eliminate tax withholding, so that each taxpayer must make out a check from his/her own account each month or quarter to pay the taxes.
Another critical factor is to make ALL INCOME taxable, and this means every form of benefit received from an employer, including health insurance payments, pension payments, use of luxury cars, luxury meals, stock options, and every other form of compensation. All income should be taxed.