Subject: Taxes Comment: Dear Advisory Panel, Thank you for seeking public opinion on taxes and how to reform the system. As a social worker, I have always advocated for a strong safety net and recognized the importance of supporting the public good that taxes provide for such as public schools, safe roads, police, environmental protection, etc. The LA Times recently published an article by Professor Benjamin Barber who explored the merits of privatizing Social Security. I believe that the value of taxes can be viewed in the same manner that Professor Barber viewed Social Security entitlements: as representing "an emblem of civic membership and a reflection of the benefits that come with the responsibilities of citizenship." A major problem with the tax system, however, is the inherent unfairness with tax breaks and loopholes that only the wealthy or big businesses can access. For example, why should wealthy individuals avoid paying taxes on yachts by taking them to Mexico for 90 days? People who can afford such luxuries should play by the same rules as the rest of society. I have also read of financially secure companies that do not pay any taxes because of existing loopholes that no one has the political courage to eliminate even though they are no longer needed. These tax breaks and loopholes are well known and taken advantage of - at the expense of the public good. There are other tax breaks that only benefit certain segments of society, such as homeowners. I place myself in this category and do not see why homeowners are given this benefit and not renters. Homeowners have the additional advantage of a return on their investment which renters do not. Again, this may have made sense at one time but builds unfairness into the system, diluting support. I've read that a flat tax is of interest to some groups. My concern with a flat tax is that although the tax is the same rate across the board, this method unfairly benefits those more well off than those who struggle to get by. Those at the lower end of the rung end up paying a higher percentage of their income to taxes. I believe the current tax system is still appropriate if tax breaks and loopholes are eliminated across the board for everyone. I believe that rates could be fairly adjusted and even raised back to previous levels for higher income groups so that as a society, we are able to pay for the services we have come to expect and demand. We also need to have an honest dialogue with each other and hear our political and religious leaders nurture and support the ideals that the tax system was built upon so that we all understand how paying taxes is a civic duty that brings benefit to ourselves, our neighbors and the communities we live in throughout the nation. Sincerely yours, Susan Perlson |