Subject: Tax Reform Comment: I am certainly uner the impression that the tax system needs to be reformed because it unfair due to the loopholes, tax breaks and manipulation of the tax code by wealthier tax payers. I do not believe that modifications to the current tax system will be sufficient. I am most partail to the idea of the "fair tax", if indeed a major reform were to take place. However, I am simultaneously aware that a reduction in tax rates may lead to an increase in the deficit. I do not believe that a reduction in taxes will lead to an increase in the deficit becuase of basic fiscal policy. If consumers' taxes are lowered then they have a greater purchasing power. This purchasing power will either lead them to buy goods or services, thus puting money back into the economy, or they will save the money. Saving the money is also beneficial to the eonomy because money in savings does not lay dormant. It can be collecting interest in a bank or may be invested in stocks. Money being saved in a bank account can be lent out by that bank to help small businesses get on their feat, once again stimulating the economy. Although I understand that it is a very complicated, I beleive that major tax reform is necessary. |