Posted: May 02, 2005 By: Deborah A Kohler CPA

Subject: Tax reform

Comment: 1. Married couples should not be penalized. All exclusions, deductions, credits should be double that allowed for single people. One example is that $25,000 is excluded from the social security computation for single people and $32,000 is excluded for married couples.
2. The limits for the taxability of social security benefits have never been adjusted since this provision was enacted. These limits should be indexed every year just as the zero bracket amounts and personal exemptions are.
3. Anyone having total income on Form 1040 of $200,000 should not receive any social security benefits, only Medicare. This would leave a significant amount of money in the social security system for future generations. Also, everyone should have to work for a minimum of 10 years before being able to collect social security benefits. A person's social security benefits should only be based on their earnings, not their spouse's.
4. The first $3 million should be excluded from estate taxes. After that, a graduated rate should apply.
5. Deductions for real estate taxes and mortgage interest should continue as the primary itemized deductions to encourage home ownership. Real estate taxes need to be reduced and replaced with taxes such as sales tax and earned income taxes so as not to penalize the homeowners. The school district real estate taxes in my district are outrageous since there is little industry in the area.
6. Salary caps should be instituted for professional athletes, actors and actresses. None of these people are worth what they are getting paid now. Any excessive salary over $500,000 per year should be taxed at 50% to curb abusive situations.
7. Lawsuit proceeds should be heavily taxed above a certain award such as $500,000. This would discourage nonsense lawsuits that are tying up the court system and the sue-happy lawyers that don't care about right and wrong, just getting their names out there for various awards. Lawsuits should be screened for the validity of them before they go to court like in England. If I fell on a crack in the sidewalk, it's because I wasn't looking where I was going; if I spilled hot coffee on myself, it was because of my clumsiness. No lawsuit should be instituted here.
8. Health care reform is desperately needed. Tax dollars should be used to make health care affordable for all US citizens. The medical profession needs to be more regulated to keep health care costs in line.
9. English is the language of the US and everyone here should have to speak English just as our ancestors did. It is very disturbing that we are using Spanish as a second language and printing everything in both.
10. The welfare system should be eliminated. Assistance should be earned for trying to help yourself (similar to the earned income credit). Only US citizens should be entitled to assistance.
11. This country was founded based on the religious belief in God. The choice in the constitution is how to worship God, not if God exists. When we give in to eliminating phrases like "In God We Trust" or "One Nation Under God" to appease some non-believer, there is a huge problem in this country. Also, students should be encouraged to pray during a moment of silence every morning in school after reciting the Pledge of Allegiance.