Comment: To: The President's Advisory Panel on Federal Tax Reform < ">comments@taxreformpanel.gov Suggestions on the Tax Reform Principles, Process and on the reform, itself: 1. Definition of the Problem. Before you recommend solutions, make sure that you have adequately defined the problem you are trying to solve in a formal document. Without such a document, everyone will have a different perception of what the problem is, and will focus on his or her pet peeves while ignoring the rest. 2. Prioritize the list of Problems. Prospective solutions will attack some problems, but aggravate others. 3. Create a yardstick from the Prioritized List of Problems to sort through suggested solutions, perhaps in the form of a checklist along with a statement of principles. 4. One principle to consider is that no individual making more than the median income should pay less than one who is at the median income level. The public perception is that the more affluent individuals pay less than their fair share or escape paying income taxes entirely. VAT has the potential to tax everyone at the same rate. Any progressive rate solution should do at least as well as VAT, while eliminating loopholes. 5. Write a system level specification for the most attractive solutions. NASA and the military have used the systems engineering discipline to create design documents to develop everything from Lunar Landers to Satellite Navigation Systems to entire National Defense Systems. The specification in this case would provide a template for incorporating or discarding features of suggestions. 6. Feature the Specification in your report to the President as part of the formal definition of your recommendation. 7. Revise the specification over time to provide the framework for making changes to the laws and regulations necessary for keeping Tax Reform up to date. 8. In considering multi-tiered tax brackets, develop mathematical models to determine where the break points ought to be, rather than just picking a number out of a hat. This makes the choice of break points more transparent and maintainable over time. One such model might define the break points at multiples of the standard deviation from the median income. 9. Once this process is established, evaluate promising suggestions against the templates you have established, so the authors of suggestions, the general public, the government and the President can identify why you recommend adopting some solutions and reject others. 10. Consider recommending a body, such as your panel, to perpetually monitor tax reform, updating the definition of the problem, guiding principles, yardsticks, etc. and report annually to the President or to Congress. Good luck and God speed. Robert R. Holden 1310 Pearl Street Santa Monica, CA 90405-2606 (310) 452-5902 holden_rr@hotmail.com |