Subject: Income Tax Reform Comment: First, you need to follow the footsteps of the 1986 Tax Reform Act to simplify the tax code. Second, you need to enhance revenue collection to reduce the budget deficit and place Medicare and Social Security on firm financial grounds. The present income tax system should be kept, earned income tax credits should be reduced, the highest tax rates need to be raised, there needs to be exemption from income taxes for the first $1,000 or so of both interest and dividends and then both taxed at normal tax rates (not the abortion of figuring out qualifying dividends as now exists). Within these broad outlines a simplier tax code needs to be enacted to "share the pain" and place the country back on firm fiscal grounds. |