Banner Image: President's Advisory Panel on Federal Tax Reform
Button: Home Page
Button: Executive Order
Button: Members Page
Button: Public Meetings Page
Button: Press Realese Page
Button: Notices Page
Button: Privacy and Legal Notice
Button: Comment Form
 
Header: Comments
General Comments:
    from Business Group

Back to List

Page: 1  
Posted: Feb 22, 2005 By: Singer, Paul


File: 022205SingerPaul.doc
Posted: Feb 24, 2005 By: Haag, Gary


File: 022405HaagGary.doc
Posted: Mar 08, 2005 By: Technical Answer Group


File: 030805TAG.pdf
Posted: Mar 08, 2005 By: Independent Community Bankers of America


File: 030805ICBA.pdf
Posted: Mar 08, 2005 By: Bohall, Hoover & Associates


File: 030805BohallGary.pdf
Posted: Mar 08, 2005 By: Cross Companies Construction


File: 030805CrossCompanies.pdf
Posted: Mar 08, 2005 By: Innovative Generational Resources


File: 030805IGR.pdf
Posted: Mar 19, 2005 By: Threefields Electronic Processing


File: 031905Threefields.doc
Posted: Mar 29, 2005 By: JHM


File: 032905JHM.doc
Posted: Apr 03, 2005 By: Titus Information Systems


File: 040305TitusInfoSys.doc
Posted: Apr 08, 2005 By: Golds Gym


File: 040805GoldsGym.doc
Posted: Apr 25, 2005 By: David A. Hawkins

Subject: Tax policy

Comment: Connie Mack has is somewhat right. While raising revenue may be the primary reason for taxes, the Congess uses tax policy to DICTATE social policy. It's quite simple - the Congress rewards the bahavior it wants by providing tax deductions or credits.

Posted: Apr 25, 2005 By: Terrence Lee Zehrer

Subject: Comments for the President's Advisory Panel on Federal Tax Reform


File: Letter to President's Advisory Panel on Federal Tax Reform.doc
Posted: Apr 25, 2005 By: Chris Granger

Subject: The President's Advisory Panel on Federal Tax Reform

Comment: Attached please find comments regarding specific proposals to reform the tax code.

Thank you,
Chris Granger

File: Executive Order No.doc
Posted: Apr 25, 2005 By: David Hickman

Subject: Proposal for making income tax Fair and Simple

Comment: Dear Tax Reform Panel,

I am an individual contributor. I'm submitting my idea in a Word document by email as requested.

Thanks,
David Hickman
AynRandDLH@yahoo.com

File: FairSimpleTaxProposal.doc
Posted: Apr 25, 2005 By: John T. Junkins, III

Subject: commission report on tax deductions

Comment: My comment is short and to the point. Since 1990, has there ever been a presidential commission to study governmental spending waste? Someone should focus on ways for American businesses to be more competitive with their foreign competition. A good way to do that would be to reduce the tax burden on businesses and the citizens of the US. Why do you think the deductions exist?

Posted: Apr 26, 2005 By: Gregg Holloway

Subject: fair tax

Comment: Allow the big spenders to pay the big taxes! Adopt the fair tax proposal.
Thank you
Gregg Holloway

Posted: Apr 26, 2005 By: ATHEY

Subject: IRS, Fairtax, and common sense

Comment: For years I've detested a tax system with over 10,000 pages of rules; convoluted forms, and questionable answers from the 'experts'(IRS). The Fairtax proposals are well thought out and seem to cover the gamut. This is a serious situation and Fairtax deserves very serious consideration(and adoption). Thank you for a serious, apolitcal handling of this question.

Posted: Apr 26, 2005 By: Brian

Subject: Tax Reform

Comment: I agree the government heeds to have an income; but the income tax is not the most efficient and profitable method to collect that income. I suggest that the panel review the FairTax proposal by Congressman Linder. It will stimulate the economy in our nation, and in turn increase the amount of spending, which will increase the government's income. And it will accomplish all of it in a fair and progressive manner without penalizing or rewarding any particular group of people.

Thank you
Brian

Posted: Apr 26, 2005 By: George L. Battey

Subject: Eliminate the IRS

Comment: Please refer to the "FAIR TAX" proposal!

Thank you, George L. Battey

Posted: Apr 26, 2005 By: Richard E. Jester, Attorney

Subject: Fair Tax Proposal

Comment: This is to voice my support for far-reaching tax reform. The current tax system is a tremendous burden on society as a whole and especially on small businesses. A simpler system is sorely needed.

I strongly advocate the Fair Tax Proposal, for a national retail sales tax. The proposal includes a pre-bate to completely eliminate the tax burden on most lower-income people. The proposal will reduce my business and personal tax compliance time committment from about two weeks to two minutes per year.

Please consider and recommend the Fair Tax Proposal.

Sincerely,
Richard E. Jester

Posted: Apr 26, 2005 By: Department of Interiors, Ltd.

Subject: taxes

Comment: The wealthiest in the USA need to be sharing more of the tax burden than they currently are. Their planned reductions need to be eliminated.

Posted: Apr 26, 2005 By: Charles Bennett

Subject: Income Tax

Comment: If the income tax is not eliminated but only revised it leaves the door open for piling on additons at a later date. But if the income tax can be abolished and replaced with a national sales tax it would prevent the income tax from being corrupted and ending up as it is now. If a nationl sales tax is adopted it would catch all the hidden income that is not currently taxed. I feel the only true tax reform should be the national sales tax, FairTax.

Posted: Apr 26, 2005 By: Jayne Jones

Subject: Pro-FairTax

Comment: I feel it is time the Federal Tax system is overhauled. It is too complex, too costly and unfair. The Fair Tax on consumption is probably too simple for Congress to grasp, but if anyone in DC had any gonads, this would be tried. Why not let us vote on the change. Congress has spent billions on far less. I totally understand the Boston Tea Party at this point.
Thanks.

Posted: Apr 26, 2005 By: Matt Lemmon

Subject: HELP.....

Comment: As a small business owner in a very competitive industry I have been forced to operate my business on my own in order to be competitive...and to still make enough money to survive. It takes all my time just to keep jobs coming in....and getting them done. The last thing I need to be spending time dealing with is the HUGE amount of paperwork that the Government has piled on us business owners over the years.... Due to the fact that I don't have the time...nor legal knowledge to do the work...I often just let it slide...Then get hit with the massive fines and penalties that they impose.... Please do something to simplify the system... I am personally in favor of the FairTax bill.. A national sales tax will make me pay more in Taxes...but I would welcome that in the fact that it gets the IRS and all the paperwork off my back.... and allows me to spend that time doing what do best...Earning money.... Thanks ...

Posted: Apr 26, 2005 By: Gary B. Cloy, Attorney At Law, P.C.

Subject: FairTax

Comment: Please consider the National Retail Sales as the "cure" for our current income tax system. H.R. 25 is the most direct answer. Abolish the I.R.S. now. With the NRST every dollar spent in America on new products would be taxed. This would tax all of us who already pay taxes but those that presently do not, such as illegal aliens, drug traffickers, foreign tourists, etc. It would free up billions of dollars spent on tax compliance, make the taxes transparent and collection simple.

I could write a treatise but choose to keep this simple.

Please support the National Retail Sales Tax and abolish the Income Tax.

Thankyou,
Gary B. Cloy

Posted: Apr 26, 2005 By: Denis M. Kluba

Subject: Tax

Comment: Please go with he Fairtax proposal.

Thanks,

Denis

Posted: Apr 26, 2005 By: Don P. Bracken

Subject: The Greatest Tax Scheme on Earth


File: TaxScheme1.doc
Posted: Apr 26, 2005 By: Bracken Enterprises, Inc

Subject: Myth


File: Myth1.doc
Posted: Apr 26, 2005 By: Bracken Enterprises, Inc

Subject: How progressive is the FairTax?


File: HowtheFairTaxaffectsdifferingincomelevels37704.doc
Posted: Apr 26, 2005 By: Bracken Enterprises, Inc

Subject: NTU Letter


File: NTULetter.doc
Posted: Apr 26, 2005 By: Jeff Haugh

Comment: April 24, 2005

Distinguished Panel Members:

During your crucial upcoming deliberations, I urge you to give the greatest consideration to Congressman Linder’s proposal for a national retail sales tax to replace all current aspects of the federal income tax code.

Any retainage of an income tax will represent no progress. Regardless of the rate, the calculation of income is the basis of the corruption in our current tax code, and is largely responsible for the soon-to-be catastrophic drop in national compliance. We simply cannot afford to run the country’s affairs while collecting only 75% of the revenues due (your own GAO’s estimates, I believe).

Adopt the retail sales tax in its simplest form. Collect from everyone. “Prebate” only to those who are documented citizens (this problem will only get larger in the future—the Fair Tax solves this problem neatly). Reduce the role of government to two items: (1) determining the rate and (2) determining how to spend it.

Thanks for your consideration.

Jeff Haugh
Westminster, Md.


Posted: Apr 26, 2005 By: Robert Berkelo

Subject: FAIR TAX

Comment: For what it is worth, I am strongly in favor of some kind of pro-gressive sales tax. This would have everybody paying tax, even the underground economy. A Flat tax will only be paid by the tax payers already paying incom taxes!!!

Posted: Apr 26, 2005 By: Ray Haubelt

Comment: I am sure that by now you have heard all of the PRO/CON on all positions.

I WOULD LIKE TO ADD THAT I AM IN FAVOR OF THE FAIR TAX {Also known as the National Sales Tax}. I would also like to add that ANY tax change WILL NOT WORK unless the IRS is canceled in full.

FEATURES OF THE FAIR TAX, HR 25 (SB 25)

1. Taxpayers keep their whole paycheck, 23-42% more income to spend, save or pay for education, all creating a robust economy.

2. When spending this extra money, the retail sales tax paid WILL NOT
Increase the cost of purchases because this retail sales tax is a REPLACEMENT tax paid to replace the previously removed, embedded corporate taxes.

3. These corporate income taxes, matching Social Security, CPA and lawyers fees inflate our goods 20-30% and hinder our ability to compete overseas since we are exporting our embedded taxes. (Business-to-business taxes are eliminated).

4. The revenue raised by this 23% tax equals the amount presently collected under the income tax system. The six research economists and study groups found that more revenue would have been collected via a consumption tax than an income tax during years of unemployment or slow growth since consumption continued from savings.

5. The FairTax is simple because there is no filing, no recordkeeping, no IRS, nor a 55,000 page code. The 100+ pages of the FairTax bill are primarily transition instructions since there is no recordkeeping or forms, and, therefore, eliminates all loopholes. No one escapes from paying at the cash register, the porn industry, the conscientious objector, illegal immigrants, nor the underground economy.

6. The FairTax rate is 23% tax inclusive. Even the present lowest rate of 15% + 7.5% Social Security/Medicare is almost 23%. Further, as stated in item 2, purchase prices DO NOT increase.

7. In addition to the impoverished being able to make purchases without embedded taxes, they receive a prepaid monthly rebate of their Sales taxes spent on the first $10,000* paid for basic necessities (poverty level) as established by the Dept. of Health and Human Services. This literally untaxes the poor who presently are in the 20-30% tax bracket.

8. The FairTax is fair because those who choose to consume pay more. If, however, they create jobs, spend for research and development, or give to charity, these activities will no longer be taxed!

9. The elderly have no tax on their 401K's, IRA's, capital gains, or Social Security. Their purchases are 20-30% less because there are no embedded corporate taxes. Further, the prepaid monthly rebate assures no taxes will be paid on the first $10,000* spent for basic necessities of life. There will be no taxes paid on the sales neither of their biggest asset, their home, nor on their estate, or business or family farm, nor on any gifts.

10. The intrusive IRS is eliminated since the state comptroller who
presently audits and collects the state sales taxes simply adds another 23% to his collections. This successful system has been in effect for 46 states for years. Eliminating the IRS is a $500 billion annual savings to taxpayers in compliance costs and $10 billion IRS budget savings.

*Readjusted annually


Posted: Apr 26, 2005 By: James Kleitz

Comment: 50 Reasons I Support the FairTax
(How many reasons can you give for supporting the present IRS tax system?)

Those Who Know the Facts Love the Fair Tax
www.fairtax.org

FairTax and Individuals and Families (Family-friendly tax reform)
1. It allows workers to keep 100% of their pay, with nothing withheld the IRS or for Social Security and Medicare payments.
2. It is revenue neutral with the present income tax system, funding the federal budget at current levels.
3. It shifts the tax to consumption. Records show that consumption is more stable than income, therefore the tax revenue stream is likely to be a more stable and predictable amount.
4. It is progressive, a “prebate” of the tax amount up to the poverty level is given to everyone. This means that those spending below the poverty level have a net gain because the “prebate” exceeds the amount paid in taxes. (Under the present system the working poor pay the payroll tax even if they get a full refund of income tax withheld.)
5. It doesn’t tax pre-owned items – clothes, cars, homes. Only new items are taxed when sold by a business to an individual.
6. It is expected to remove an average of 22% of the cost of American made goods by removing the built-in payroll tax (the other 7.65% of earnings that employers pay), corporate income tax, and other business taxes that are now passed to consumers as an “embedded" tax of approximately 22% due to the cascading of income and payroll taxes paid by U.S. employers, at every step of production, to the U.S. Treasury. Competition will cause prices to fall by approximately that amount, on average.
7. It allows families to save more for home ownership, education, and retirement. An average family making $50,000 will have $7,500 more spendable income.
8. It removes the need for formal accounts of the 401(k), IRA, HSA, etc., varieties. Anyone, rich or poor, will be able to set up any kind of savings or investment account without regard to taxes or the government. No special knowledge of tax law is necessary.
9. It makes educational tuition a tax-free expenditure of tax-free income.
10. It eliminates the income tax and the IRS. Members of Congress and the public overwhelmingly agree that the current internal revenue code is cumbersome, intrusive, coercive, and inefficient.
11. It eliminates 90% of the cost of compliance. American families and American businesses waste an estimated $250 – $600 billion per year (and countless hours of time) doing the paperwork necessary to comply with the current tax code. That is roughly $1,000 – $2,000 annually for every man, woman and child in the U.S. (Businesses typically pass their tax bills and compliance costs on to the consumer, i.e., individuals and families.)
12. It’s simple, unambiguous, and certain, the opposite of the current tax code, 60,044 pages and counting.
13. It assures that no American will find, at the end of the year, a need to get a loan to pay taxes as an alternative to penalties, interest, or cheating.
14. The broader tax base comprises everyone spending money in the U.S., including the ten percent of our economy (an estimated $1 trillion) that today is underground or under the table. Under the FairTax, the illegal drug dealer will pay his tax just like the rest of us when he buys his sunglasses, BMW, and other items, as will those who work for cash and undocumented immigrants, all of whom receive government and societal benefits.
15. It encourages work by letting workers keep 100% of their earnings and giving a rebate, in addition, making the notion that “the more you work, the more money you have”, a reality, unlike the current system where welfare is lost when you go to work, so the first dollars earned after taxes just offset what a welfare recipient is currently receiving in assistance, so working is perceived as disadvantageous.
16. It allows more of the lower income families to become home owners by allowing a second job income above their current income (all tax free) to be applied to a mortgage. Money for down payments for homes is also saved totally tax free, causing it to accumulate faster.
17. It has the result that all lending in America will be at the equivalent of today’s tax exempt interest rates, which are 25%-30% less than today’s taxable home mortgage interest rates. This will create a huge boom in housing purchases and allow existing homeowners to refinance and reduce their cost of homeownership substantially.
18. It allows families to retain farms and businesses in the hands of those who built them through the elimination of the death tax.
19. It allows families to give tax-free assistance to one another by eliminating the gift tax.
20. It gives individuals (and businesses) the right to donate as much as they want to in a given year to charitable causes, without concern for exceeding an allowed limit on giving.
21. It encourages individuals to self-insure, making the health system more direct-pay (no 3rd party pay), thus bringing costs down.
22. It puts an end to the anxiety for honest taxpayers that begins soon after January 1 for most of use, culminating in wondering whether we’ve claimed everything we legally could and nothing we shouldn’t, all without raising questions at the IRS. It makes April 15 just another day. (Perhaps it will be a holiday after the FairTax is enacted!)
FairTax and Social Security and Medicare
23. It eliminates the regressive payroll tax that hurts the poor. Currently, every one of us is taxed a minimum of 7.65% on our first-dollar of wages up to $90,000 (the cap for FICA, not Medicare), if we earn that much. It provides funding for Social Security and Medicare at a level equal to or greater than the present.
24. It provides that all 290 million Americans and 51 million visiting tourists fund Social Security and Medicare with their purchases. Today only 110 million workers fund these programs via deductions from their paychecks.
25. It assures that the wealthiest Americans will be voluntarily helping to fund social security with every last dollar they spend above the poverty level. Today, earnings are subject to FICA taxes only up to $90,000. The wealthiest Americans therefore do not pay into the system above that amount. If their earnings are from investments, no earnings fund the Social Security system.
FairTax and the Economy
26. It increases investment in business by eliminating the capital gains tax.
27. It allows for better planning by businesses, because they no longer have to consider tax implications for everything they do.
28. It makes higher employment or better compensation possible in the small business sector, where today it costs approximately three dollars in compliance costs to pay one dollar in payroll and income taxes.
29. It makes American products more competitive overseas by removing the embedded tax from them, thus lowering the prices of our exports, which compensates for low foreign wages.
30. By making our exports more competitive overseas, it lowers our balance of trade deficit and increases employment at home.
31. By removing the embedded tax from them, it makes American products more competitive with imports here, compensating for the low cost of imported products from which taxes have been removed before exportation to the U.S.
32. It encourages investment in companies located in the U.S., thus providing a home for money already in the U.S. and attracting more. The U.S. will be the most attractive tax-free haven in the world for doing business.
33. It encourages repatriation to the U.S. of money held by U.S. individuals and companies now in foreign countries, with no tax consequence. American companies will return from offshore and overseas.
34. It results in a windfall profit, likely to be invested in job-making businesses, for many of those holding taxable corporate high interest bonds at the time of passage of FairTax, since the bonds will not be taxed under FairTax. (Currently, a higher interest rate is usually paid to entice investors to buy the corporate bonds rather than go with the lower interest, but tax free, municipal bonds.)
35. It results in Federal Reserve rates being based on current consumption, which is rather stable, instead of future earnings, which are less predictable, resulting in surer inflation prevention.
36. It reduces production costs for farmers and other subsidized businesses, leading to a reduction in subsidies, thus reducing the federal budget.
37. It moves many individuals now providing tax advice (return preparation, advice, accounting, planning, and records maintenance) into an expansive economy where they will be producing goods and services. There they can add to the standard of living of all Americans and likely earn more than they do currently, instead of shuffling paper for the government (and not contributing anything economically to society).
FairTax and Churches and Non-profit Organizations
38. It frees churches and other non-profit organizations from the expense of filing tax returns and paying their half of Social Security and Medicare payments for employees. There will no longer be any 501(c) (3), 501(c) (4), etc., non-profit tax status, because there will be no more tax to be exempt from.
39. It restores to churches and non-profit organizations the 1st Amendment right to engage in free speech, without fear of losing their tax-free status.
FairTax and Rights and Freedoms
40. It restores the 4th Amendment, protecting against unreasonable searches and seizures, from which the IRS presently is exempt.
41. It restores the 5th Amendment, which guarantees the right to due process. Under current systems the IRS has their own courts with their own set of rules not included in the 5th.
42. It restores individual privacy. The government no longer needs to know where you work, what you are earning, and what you are doing with it.
43. It relieves citizens of the risk of facing the shift in burden of proof that is so common with the current system, i.e., the taxpayer is guilty unless innocence can be proved, but even the IRS staff sometimes gives conflicting interpretations.
44. It eliminates the need to have a "marriage" clarification declaring who you live with, as that no longer has any bearing at all on a state or federal sales tax.
45. It eliminates the need for courts to decide which divorced parent gets to take the tax deduction for children.
FairTax and Government and Educational Entities
46. Without FICA to pay, most states, counties, municipalities, and school districts will see a large increase in their state budget revenues, additionally lowering the overall tax burden (State & Federal) for most Americans.
47. It eliminates the administrative costs incurred by states in collection of state sales taxes because states will piggyback the state tax collection onto the national tax collection, for which they are compensated by the FairTax ¼% administrative cost give-back. (Retailers receive an equal amount for collecting the FairTax.)
FairTax and Politics
48. It cleans up a major flaw in campaign financing, eliminating campaign donations for "tax favors".
49. It eliminates wrangling in Congress over tax cuts, the tax code, and who is or is not paying a fair share of the tax bill, providing more time for debate on more productive issues.
FairTax and the Environment
50. It’s good for the environment. Reportedly, the IRS sends out 8 billion pages of forms and instructions each year. Laid end to end, they would stretch 28 times around the earth. Nearly 300,000 trees are cut down yearly to produce the paper for all the IRS forms and instructions. Also, since it taxes only new items, it would encourage buying tax-free pre-owned cars, clothes, furniture, houses, etc. Reuse is good for the environment, too.

Kenneth J. Van Dellen (with help from friends)


Posted: Apr 26, 2005 By: Dick Whitfield

Subject: The Fairtax-HR25/S25

Comment: By far and away the only proposal offered to date that makes any sense is the Fairtax. If you folks are really serious about fixing the damage done by the income tax, the Fairtax is the ONLY viable option.
See the website-fairtax.org. This is one of the finest crafted pieces of legislation ever produced and will free up our country and restore us to the prominence we once enjoyed.

Posted: Apr 26, 2005 By: Robert Richards


File: TaxReformCommentsRWR1.doc
Posted: Apr 26, 2005 By: Bruce Langford

Subject: National Sales Tax

Comment: To Whom It May Concern (which is ALL of us),

I fail to see the down side of a National Sales Tax.

(other than the 1 million people it would put out of work
who earn their living trying to negotiate the current tax system)

Eliminate food and health care from the equation
and permit people to pay the taxes they want to
pay if they choose to buy the item. The price of everything goes up, but so does your take home pay!

For those who INSIST that any "fair" tax system
should PENALIZE people who work more and earn more,
this should make them happy.
I will pay more taxes because I will spend more money.

What is "fair" about allowing my neighbor a
write-off that I am not allowed simply because I
make more money? Should I also have to pay more for
the same loaf of bread he buys? Should I have to pay
more for a shirt just BECAUSE I have the money?
Of course not. This is insanity pure and simple.

National sales tax.
Pay as you go.
Simple, easy, fair.......I beg you!

Bruce Langford
Professor of Music
Citrus College
Glendora, CA


Posted: Apr 26, 2005 By: William Runge


File: RequestforComments21.doc
Posted: Apr 26, 2005 By: Andrew Sorg

Subject: Fair Tax Reform

Comment: I support Fair Tax(HR25/S25) as a solution for a new tax code. The current system is too complicated and not fair. Fair Tax will help everyone.

Posted: Apr 26, 2005 By: Linda Traylor

Comment: Dear Tax Reform Panelists:

I support the tax reform plan known as the Fair Tax (HR 25/SB25).

The Fair Tax is the only tax idea that levels the playing field for all Americans. From all estimates, it should fix Social Security and stimulate our economy. It’s the only plan that is fair (no loopholes!), and with its “prebate”, it is the only plan that helps all Americans, rich or poor.

Please look at the Fair Tax plan closely and then recommend it to President Bush.

Sincerely,

Linda Traylor
Otwell, IN
812-354-2720


Posted: Apr 26, 2005 By: REDMAN & COMPANY INSURANCE INC

Subject: TAX REFORM

Comment: A NATIONAL RETAIL SALES TAX IS ABSOLUTELY THE BEST TAX REFORM WE COULD DO. IT REDUCES THE 1000'S OF PAGES OF TAX CODE TO 100'S. IT ALLOWS BUSINESS TO CONCENTRATE ON BETTER PRODUCTS; NOT ON HOW TO SAVE FROM PAYING MORE INCOME TAX. IT IS FAIR TO ALL. THE RICH WILL PAY THEIR FAIR SHARE; THE POOR WILL RECEIVE A REFUND FOR THE TAX PAID FOR ESSENTIALS. EVEN THE CRIMINAL ELEMENT WILL PAY TAXES ON THEIR NEW PURCHASES BOUGHT WITH BLACK MARKET MONIES.
PAYROLL TAXES; DOLLARS FOR SOCIAL SECURITY COULD ALL BE ROLLED INTO THIS SALES TAX PROGRAM. EVEN AS IMPORTANT, FOREIGN VISITORS WILL HELP PAY FOR OUR ROADS AND OTHER INFRASTRUCTURE THEY USE. WHEN WE IMPORT FOREIGN PRODUCTS WE ALSO COLLECT SALES TAX ON THEM. OUR U.S. MANUFACTURERS ARE NOT AT A DISADVANTAGE ANYMORE TO THE FOREIGN SUPPLIERS; BECAUSE THEY WON'T HAVE TO BUILD EXTRA COST INTO THEIR PRODUCTS TO ACCOUNT FOR THE CORPORATE INCOME TAX. (OUR NEXT REFORM NEEDS TO BE TORT REFORM; SO MANUFACTURING AND SERVICES DO NOT HAVE TO BUILD EXTRA CHARGE INTO THEIR PRODUCTS FOR LEGAL CHALLENGES SURE TO FOLLOW.)

Posted: Apr 26, 2005 By: Paul R. Richard, Jr.,CPA

Subject: Comments Requested

Comment: Please see attached Microsoft Word file. Should you need this in a
different format, please advise. Thank you for your assistance.

Paul R. Richard, Jr.,CPA

Paul R. Richard, Jr.CPA
P. O. Box 2891
Slidell, LA 70459

Attn: Tax Reform Panel
Subj: Requested comments from 1st Panel Meeting 02/16/05

Dear Sir or Madam,

Thank you for allowing us to submit our comments on such an important national issue. I will keep my feedback as concise as possible.

The current system is failing at a higher rate each year. More of the burden is being shifted to the everyday, middle income tax payer because of the structure of the system. In an ideal world, the system would work fine. However, due to the overwhelming complexity of the code, it is impossible to enforce. Therefore, there are many, many people not paying their equitable share of taxes.

One aspect of the tax system that is unfair is that business owners are increasingly becoming aware that ANY “business” can become a huge tax shelter. Personal expenses are filtered through and taken as ordinary business expenses. It is impossible to audit every business. And even if the IRS audited most of them, it is only a small portion of a company’s expenses that are personal in nature and would be very difficult to find.

As you evaluate the existing system I ask you to consider the following goal:

“Every RESIDENT of this country should pay his or her proportionately equal share of taxes once income extends beyond the poverty level”

The only way to ensure this occurs is to adopt a national sales tax. By adopting this policy, each person will pay tax in proportion to his or her spending level. In additional, the government will actually have increased revenues without raising the percentage of tax most people pay. This will be achieved through a much higher number of citizens paying SOME tax, as opposed to none or very little.

A comprehensive review of the plan will ensure that most people will agree with this approach once educated on the components. Thank you again for your time and attention to this matter. I look forward to reviewing the summary results of your inquiry.

With kindest regards I remain,
Very truly yours,

Paul R. Richard, Jr., CPA



Posted: Apr 26, 2005 By: matt eck

Subject: hr25&s25 fair-tax

Comment: I'm a 65 year old businessman and I dread turning my business over to my grandchildren with the IRS code of today. let's scrap it and go to the fair-tax. I will only vote for people that support it.

Posted: Apr 26, 2005 By: matt eck

Subject: hr25&s25 fair-tax

Comment: I'm a 65 year old businessman and I dread turning my business over to my grandchildren with the IRS code of today. let's scrap it and go to the fair-tax. I will only vote for people that support it.

Posted: Apr 26, 2005 By: Jim Sinnerud

Subject: the fairtax

Comment: Abolish the IRS! Collect taxes at the time of purchase with the FAIRTAX. The machinery for that is already in place and the poor will not be taxed because they get a rebate.

Posted: Apr 26, 2005 By: Bracken Enterprises, Inc

Subject: Defending The American Dream


File: DefendingtheAmericanDream.doc
Posted: Apr 26, 2005 By: charles strube

Subject: fair tax bill

Comment: dear sirs
i'm writing this letter to say i'm for the fair tax bill. i believe it is the one true way tax the people . the tax payers get the first choice how they spend their hard earned money. also they can gain more money to spend because they are punished for working harder to support thier family if both husband and wife are working they keep more of there money. wveryone pays even the crooks and those that are geting paid under the table . this the most fair tax i have seen in years you the govrment keep asking what you can do to help us the best thing you can do is pass this bill so the people can take more home. the payroll tax is the worst hiddn tax on the books. please pas the fair tax bill

Posted: Apr 26, 2005 By: bobby richardson

Subject: tax reform

Comment: mr. president,
i 've always supported you and feel
that you want the best for the country.
i have been studying the "fair tax" and i
believe it would be the best for the
economy, buisnesses would return to this
country and the american people would have
more money to spend. if the private accounts do not get passed, the fair tax
could help fund the social security
system. if you have questions, get in touch with talk show host neal bortz who
is writing a book on the "fair tax".
this could make you one of the greatest
presidents the nation has ever known.
thanks for your consideration on this mater.
b. richardson

Posted: Apr 26, 2005 By: Alpha Consulting Services LLC

Subject: Current Tax Code replacement by FairTax

Comment: I have been a taxpayer for over 40 years. There was a time when I did my own taxes but it has been impossible for at least the last 20 years due to convuluted rules and complexities that drive anyone who makes over $75,000 to require professional assistance. And now, even after paying high fees to accountants you end up saving no money due to the AMT! But of course you donm't know that until the accountant goes through the whole exercise. Our tax system has be out of control for decades and it time to fix it. The FairTax proposal with a national sales tax sounds like the right solution. I'm sure transition will be hard we have to bite the bullet and get rid of this current unfair, wasteful and ridiculous system we have allowed to evlove into an absolute fiscal, legislative quirgemire.

Posted: Apr 27, 2005 By: Mike Bradley

Subject: Why worry about income?

Comment: The Fair Tax plan would go along way in ending the underground economy and reduce the load of assuring compliance. I believe the plan is fair, encourages saving, and doesn't lend itself easily to the promotion of social policy through taxation. I am a retail business owner and welcome the extra work collecting and paying the tax, in trade for the benefits of the FairTax plan. Thank You.

Posted: Apr 27, 2005 By: Ron Spears

Subject: About the

Comment: Hello;

I'd like to submit the following points about the proposed "FairTax Plan".

BUSINESSES AND INDIVIDUALS WILL NO LONGER HAVE TO SPEND OVER $250 BILLION EACH YEAR IN COMPLIANCE COSTS. By not having to pay the costs of tax planning and filing, businesses will have more money to invest in expansion and modernization for global competitiveness. Individuals – wage earners – will be able to buy more, save more and invest more.

THE FAIR TAX WILL BE A TREMENDOUS BOOST TO OUR ECONOMY! The cost of tax compliance and payroll taxes is built into the price of every good or service we currently purchase. Eliminating these costs will reduce production costs of U.S. products by an estimated 22%; therefore, prices will not go up. Foreign goods for sale in the U.S. will also be taxed, making American products 20% to 30% more competitive at home and abroad. Dr. Laurence Kotlikoff, chair of the economics department at Boston University, estimated that the move to a broad-based consumption tax would add a 7% to 14% increase in GDP.

JOIN FAIRTAX AND BRING JOBS HOME. Our current income tax exports our jobs, rather than our products, but the FairTax allows U.S. exports to sell overseas for prices 22% lower, on average, than they do now – with similar profit margins. Lower prices sharply increase demand for U.S. exports, thereby increasing job creation in our country’s manufacturing sectors. America will be virtually the only country selling products abroad at prices that do not include a tax component in the price. As a result, multinational companies will flock to setup shop in the U.S.

INTEREST RATES WILL FALL 25% to 35% UNDER FAIRTAX, FURTHER STIMULATING ECONOMIC GROWTH. Investors will no longer need to receive a “tax premium” to achieve a particular after-tax rate of return as interest income to investors will not be taxed. Today, tax- free municipal bonds command lower interest yields as no tax premium is included in the rate. In our FairTax tomorrow, all interest rates will command lower tax-free status.

WAGE EARNERS/EMPLOYEES TAKE HOME 100% OF THEIR WAGES PLUS A “PREBATE” THAT UNTAXES ESSENTIAL-LIVING GOODS AND SERVICES. With the FairTax, there will be no Federal payroll deductions of any kind – no income tax, no Social Security tax, no Medicare tax and no self-employment tax. FairTax provisions will provide monthly “prebate” reimbursements on essential living expenses and prebate all taxes to those spending under the poverty line.

Thank you for the opportunity to reply to your requested input.

Sincerely;
Ron Spears

Posted: Apr 27, 2005 By: Kruggel, Lawton & Co., LLC CPAs

Subject: Filing Deadline compression

Comment: I think that the calendar year requirement for Sub S and Partnerships, has led to a seasonal compression of work for practitioners that is becoming almost unworkable.

Secondly, accountants working 70-80 hours weeks for the first 16 weeks a year, cannot lead to a mistake-proof system.

I think Congress, and the IRS need to seriously consider the option of allowing flow-through entities to file on a seasonal basis, various due dates for sub s/partership returns based on name, FEIN, etc. would alleviate some of the errors that must occur due to accountant fatigue.

Perhaps the 444 deposit could be paid/refunded with interet, similar to how the 8868, look back rules work for contractors.

I think various years for Sub S/Partnership should be mandated based on some criteria, unless the flow-through entity can show a seasonal/business filing reason for choosing a fiscal year. If everyone has to compy with the new requirements for flow-through, the workload compression would be relieved significantly, and the possible errors that accountants may be making should also be significantly reduced.

Posted: Apr 27, 2005 By: Dr. Todd Worthington

Subject: national sales tax - FAIRTAX Plan


File: REASONSTOPASSTHEFAIRTAXINITIATIVE.doc
Posted: Apr 27, 2005 By: Chris

Subject: Fair tax

Comment: Pass the fair tax, I want all of my pay check.

Posted: Apr 27, 2005 By: Steven M. Rose

Subject: Freeze The Tax Rules

Comment: The worst enemy to tax simplication is: CHANGING TAX RULES. Please include as part of simplication a "FREEZE" on tax rules changes, so people will be willing to take the time to learn them and not avoid them.
Baseball rules don't change every year and therefore millions of Americans know THE RULES OF THE GAME and because they know them "THEY PLAY BY THE RULES, RULES THAT THEY KNOW, AND RULES THAT THEY KNOW DON'T CHANGE EVERY YEAR."
Thank you for this opportunity to comment.
I've been working in the tax field for over 25 years. If I can help, I would be glad to. I find the state of our tax system very discouraging for average Americans.
Steven M. Rose, CPA, MST
78 Granite Street
Walpole, MA 02081-1603
508-668-0065

Posted: Apr 27, 2005 By: Wildcat Homes Inc. & Matt Eck Real Estate Inc.

Subject: Support for Fair Tax from the Real Estate and home building industry..

Comment: I am attaching an article that expresses my feeling exactly on the Fair Tax...

File: FairTaxexplanationforRealtors.pdf
Posted: Apr 27, 2005 By: Aaron Watters

Comment: If we don't get some form of relief from the ever raising tax burden, the middle class is going to have an uprising.

Posted: Apr 27, 2005 By: Raymond Singer, Ph.D.

Subject: Tax reform

Comment: The income tax is burdensome, invasive, and unconstitutional. I only support a sales tax, which taxes the rich more than the poor.

Posted: Apr 27, 2005 By: William A. Tuck, Jr.

Subject: Tax reform

Comment: Please get rid of our current impossible tax system. I would prefer the national sales tax

Posted: Apr 27, 2005 By: Roy Cox

Subject: Inclusion of non tax payers

Comment: Let's not forget about finding a way to include those who work for cash or barter in the new tax paln. They presently go unchecked and often are on the recieving end of govt. programs. Thus a comsumption tax would include all of the freeloaders.

Posted: Apr 27, 2005 By: John York

Subject: Tax Reform

Comment: I have a degree in accounting and have been able to do my own tax return but onef for the 26 years since I have been working. This year I finally gave up and went to a CPA to make it through the endless tables and charts and schedules. Has anyone looked at the entirety of all the schedules, it really will make your head spin. No wonder we spend 140 billion dollars to enforce it and no telling how much more by taxpayers to implement it.

I think taxes should be ge grossly simplied and I think I am even in favor of just a plain old flat tax.

Thanks,

John York

Posted: Apr 27, 2005 By: Jim Vassilakos

Subject: Two Problems / Two Suggestions

Comment: I have a few suggestions to add to the huge mountain of suggestions which I'm sure you're already receiving. Before I make these suggestions, however, I first want to touch on what I view as two of the major problems with our current federal tax system.

Problem #1: Unfairness

I have a good friend who is running his own business. He's a great guy and a hard worker, but he's hired an accountant/attorney who has shown him how to get away with paying virtually no federal income tax. In essence, my friend owns almost nothing and his business owns everything. He makes almost nothing, but his business easily makes six figures. Nearly all his expenses are treated as business expenses, and since his "salary" is so very low, he can essentially make lots of money without ever paying a dime of income tax.
Meanwhile, there are plenty of people making far less than what my friend makes, but these people aren't business owners and hence aren't entitled to the tax loopholes from which he benefits. While I can't fault my friend for taking advantage of the current situation (after all, he isn't breaking the law), it seems that the current situation is clearly unfair and is hardly progressive.

Problem #2: Excessive Employer Paperwork

I run a business as well (it's a family business that my father started), and although I haven't organized it in the same way as my friend has organized his, I'm sorely tempted to do so.
Nonetheless, one of my biggest problems is having to deal with all the paperwork generated by our tax system. I have to prepare, for the State of California, a DE88 form every month. Then I have to send them a DE6 form on a quarterly basis, as well as a DE7 annually.
On the federal side, I have to send a form 8109 on a quarterly and annual basis for both my 941 and 940 advance payments. This is a bother, as it requires that I accurately estimate the amount of taxes I will owe by the end of every quarter.
The problem, of course, is that things can happen during the middle a tax period, unanticipated things such as the hiring of a new employee or an employee injury which takes somebody out of work for a few weeks. Such events throw off the estimates. Hence, it seems to me that the whole process of doing estimates is a waste of time, as at the end of every quarter I have to send a 941 form with my final payment, and then I have to send a 940 annually for my final FUTA payment.
Why do you require me to make both advance and final payments for all these different taxes? Are you afraid I'm going to run away in the middle of a tax period and dissolve my business so as to avoid paying taxes?
It's just too many forms and too much time wasted. I have to run a business. I know I have to pay my taxes, but why can't I just pay them once a year or even once per quarter, doing the whole thing on a single form or a single set of forms?
This whole business of having to estimate taxes prior to the end of a tax period and then having to send the estimates as advance payments and then finally having to reconcile them with reality and make final payments, all of this takes enormous amounts of time, and it makes me less productive. I could be doing something useful with my time, and instead I end up filling out tax forms and double-checking all the numbers, because correcting any mistake is enormously bureaucratic and requires a number of additional forms.
I can't help but wonder that if this is difficult for me, the manager of a small business, what must it be like for managers of slightly larger businesses, or, God forbid, large corporations? It may be that we are spending untold millions of man-hours, as a nation, filling out tax forms when we could be working on actually improving our businesses and the products and services that we offer. It's this government-generated inefficiency that astounds me. Government should be trying to make my life easier, not more difficult.

Solution #1: National Sales Tax

John Linder (R-Ga) proposed this, and I personally think it's a good idea. First of all, you don't have to tax everything at the same rate, so government could be as paternalistic as it likes, or it could be as free-market as it likes. I'd say that luxury items ought to be taxed more than basic necessities. In this way, people may be prodded into avoiding luxuries and saving more for their retirement. Also, if you want to encourage home ownership, simply don't tax homes. If you want to really encourage home ownership, have a negative sales tax where the government helps pay the mortgage. Personally, I think that's a bit over the top, but it all depends on how paternalistic you want government to be.
In order to promote charity, you could have certified charities be allowed to buy normally taxable commodities tax-free. There is already some of this in our tax code, but with a national sales tax, it could be greatly expanded. In this way, charities could advertise that they are able to use 100% of the money they receive for various projects and that not a penny would end up being pinched by Uncle Sam (at least, not directly).
One of the great things about a sales tax is that it gives government enormous control over public spending habits. If you want to discourage cigarette use or alcohol consumption or the purchase of diamond rings, just tax them at some enormous rate. If you want to encourage the purchase of fuel-economy cars or solar panels or water-efficient washers, simply declare them non-taxable.
Likewise, a national sales tax would also solve the problems of tax-loopholes and employer income tax paperwork which I previously mentioned. Furthermore, most states already have a sales tax, so the basic mechanism for collecting these taxes is well-understood. There remains, of course, the procedural problem over how to account for different items being taxed at different rates, and this would be the difficult part that would have to be worked out in some fashion, but with the increasing prevalence of computerized cash registers, I think we're finally at the point where this is doable.
In summary, I'd have to conclude that this idea of a national sales tax replacing the federal income tax seems to be the best of all the solutions so far presented, so I hope it will receive the consideration that it justly deserves.

Solution #2: Business Owners Pay Once

If you are unwilling to scrap the income tax entirely and replace it with a federal sales tax, I would at least encourage you to trust us business owners enough to stop demanding that we make advance payments of our employee withholdings. You should merely require that we send you the withholdings at the end of every quarter or every year, whichever period you think is the most appropriate for tax purposes. In this way, our paperwork could be consolidated to a single tax form (or set of forms) per tax period. This really wouldn't be that hard to accomplish, and it would save business owners, collectively speaking, an astronomical amount of time which they could better use providing products and services to their clients, hence making our nation more economically competitive.

Thank you for soliciting public comments. I hope they prove of some value to you in your deliberation process. Good luck.


Posted: Apr 27, 2005 By: The Wolfson Law Center, PC

Subject: ERISA Emergency and Tax Reform


File: TaxCommitteeltr.doc
Posted: Apr 27, 2005 By: Marketing Concepts-Don Fifield

Subject: Fair Tax

Comment: I have researched Fair Tax and find it meets all of my concerns.
My two main concerns are charitable organizations and the home deduction. I'm convinced that this plan addresses these concerns and everything else I can think of. What a blessing it would be to not have to cope with April 15th.
Let's spend whatever is necessary to help find new jobs for all the IRS employees and make the change.
Thank you for your careful consideration.
Don Fifield - Marietta, GA

Posted: Apr 27, 2005 By: Marvin Rubingh

Subject: FairTax

Comment: I think that the best alternative to the current tax system is the FairTax. It resolves a host of problems, and you should recommend that we pass it as soon as possible.

Posted: Apr 27, 2005 By: Micah Martello

Subject: Fair Tax

Comment: The Fair Tax (HR 25) is the best plan available. It will clearly create jobs and take the burden off of working Americans and small business which is the backbone of our economy. the Fair Tax will allow us to compete with other countries because we will not have to export our goods with embedded taxes.

God Bless America!

Posted: Apr 28, 2005 By: OYSTER POINT PSYCHOLOGICAL PRACTICE

Subject: Advocacy of the FairTax

Comment: I have a longstanding dissatisfaction with compliance costs (i.e., time and money) and the inefficiencies and instrusive nature of tax collections. I am enthusiastic about the FairTax and am hopeful that congress and the president can wean itself from the incestuous relationship they have with lobbyists. Scrap the tax code, dismantle 95% of the IRS and use the savings to pay down a portion of the debt, we would otherwise pass along to our children. Thank you.

Posted: Apr 28, 2005 By: Kelley Frederick

Subject: Fair Tax

Comment: I support Fair Tax, it's the way to go in this country. Of course, I also believe the real problem is spending, which is out of control, but Fair Tax is a fix for us in the time of our nation.

Posted: Apr 28, 2005 By: Richard Langner

Subject: Tax Reform

Comment: Being the owner of a small business for the last 40 years I go through w yearly ordeal of having to go through considerable effort & expense to get my taxes done. I don't think it's in any way fair that the tax code is so complicated that we have little idea of what's happening. That & the multi layers of taxes imposed on us is not fair, employer, sales, property, & other taxes make it a tough burden on us. Add to that the increase in fuel costs & it's getting harder to do business.

A flat tax or a consumption tax would simplify matters & ALL would pay their fait share. I suspect there's resisitence to this because of all the offshore havens that many of the super rich enjoy. I have no trouble with the rich, only that they, as well as everyone else, pay their fair share.

Thanks

Rich Langner

Posted: Apr 28, 2005 By: Gerald F. Dey

Subject: Fairtax & Business


File: Timeforachange.doc
Posted: Apr 28, 2005 By: FredF. Fleming, Jr.

Subject: Suggestions and Comments


File: TaxPanelSuggestions.doc
Posted: Apr 28, 2005 By: Richard Moore, M.D.

Subject: The FairTax Act HR25/S25


File: TaxReformPanelLetter1.doc
Posted: Apr 28, 2005 By: Charles B. McKinstry

Subject: Fair Tax

Comment: WE STRONGLY SUPPORT THE FAIR TAX!!!!

Posted: Apr 28, 2005 By: J&M Associates, Inc.

Comment: The one sure way toward getting our country (USA)back on track to fair taxation is to adopt the HR 25/S25 bills and move on HJres 16. A consumption tax will allow all to participate.

Posted: Apr 28, 2005 By: Ridgefield Office Supply

Subject: Support the FairTax

Comment: Payroll and Income taxes present an extreme burden to small employers such as us (we employ 18 people). The expense of complying with the laws and rules is excessive.
The FairTax is easy for us to comply with. We already collect state sales taxes in an efficient manner and at low cost. Adding an additional sales tax for the Federal level would add virtually no additional burden to our company.


Posted: Apr 28, 2005 By: Aland Coons

Subject: Looking for Serious Reform

Comment: I am a small businessman and contract employee. I work with and know many others who similarly provide a service to their community as landlords, consultants, installers, and doctors.
We all agree that the tax code is designed to be exploited by special interests. Even a flat-tax would be easier but it still involves the collection of information to calculate your profit and pay a portion if it is based on earnings.
In the end up it is just as bad a confusing waste of time and special interest lobbyist will destroy it just like our current tax code in a matter of time.
The only alternative we've seen that would really work for us as small business people is the one called "FairTax". It's based on retail purchases so it doesn't bother business-to-business transactions. Nearly all retail sales are now computerized so it's VERY easy to administer and audit. Since most states already have some form (or two or three) of sales taxes they could easily collect the taxes for the US Government.
No one I know really resents paying taxes because we recognize the value of the roads, military, social and other things provided by the law. But what we find really "freeing" about the FairTax is that we will not be individually responsible for collecting that tax anymore! And that doesn't even begin to consider the benefits to our economy, personal savings, and foreign trade that could result from lower state-side production costs.
Please end the tax on labor and savings! Let's tax spending and consumption instead!




Posted: Apr 28, 2005 By: Louis B. Whitehead

Subject: HR25/SB-25

Comment: Our present tax system is complicated and unfair to everyone. The only system that make scence is The Fair Tax system.

Posted: Apr 29, 2005 By: Gary Thompson

Subject: Income taxes

Comment: A few years ago the federal government decided to tax social security and unemployment benefit incomes. Social security payments are made with after tax income, it is not fair to retirees to tax them again on their benefits, that amounts to double taxation. As far as taxing unemployment income, that is like kicking someone when they are down. I think you should get rid of both taxes. Thank you for this opportunity, Gary Thompson

Posted: Apr 29, 2005 By: Nauti-Cat Cruises, inc.

Subject: FairTax Proposal

Comment: I strongly urge panel to recommend the elimination of the income tax and the adaptation of the FairTax as outlined by FairTax.org

The income tax system we have now is a huge drain on my time and my financial resources. I spend about $3,000 a year just to comply with reporting requirements and that is on only about $140,000 a year in sales.

First; it should not have to be so expensive and cumbersum for the small buinsess owner (or the big business owner for that matter) to comply with tax requirements. Second; the lobbying and special intrest tax breaks and loop holes need to end. Fair is the key word. You should not need an advanced degree to know what your tax liability is.

I urge you to recomend the adoption of the FairTax.

Thank you!
Russell Schindler
8666 E. Traverse Highway
Traverse City, MI 49684
231-218-7955

Posted: Apr 29, 2005 By: Joseph W. Lessard, Jr.

Subject: FairTax

Comment: I applaude your efforts to reform the tax code. I honestly believe that it is beyond repair. I urge you to abolish the current code and replace it with the FairTax. As a small business owner, I believe that taxing individuals and businesses on what they earn is a discouragement to do ones best, an incentive to avoid disclosing all income and/or a reward to those who successfully hide some. Taxing everyone on what they spend, with a rebate for those who need it, is much easier to track and allows everyone to determine at purchase time what the tax impact is.
Thanks you.

Posted: Apr 29, 2005 By: Jamrs G Semple

Subject: Fair Tax

Comment: I would like to see something like the FAIRTAX as a means of taxation to raise taxes for the operation of the government. The Fair TAX eliminates the IRS the Alternative minimum Tax as well as estate taxes and replaces them with a progressive sales tax. Such a sales tax fairly taxes everyone in the society inclunding the criminal elements in the undergeround economy. I would encourage the panel to consider adopting the FAIRTAX as our nation tax system for greater simplicity and compliance.

Posted: Apr 29, 2005 By: James G Semple

Subject: Fair Tax

Comment: I would like to see something like the FAIRTAX as a means of taxation to raise taxes for the operation of the government. The Fair TAX eliminates the IRS the Alternative minimum Tax as well as estate taxes and replaces them with a progressive sales tax. Such a sales tax fairly taxes everyone in the society inclunding the criminal elements in the undergeround economy. I would encourage the panel to consider adopting the FAIRTAX as our national tax system for greater simplicity and compliance.

Posted: Apr 29, 2005 By: Terry

Subject: Fair treatment of medical expense and health insurance

Comment: Fair treatment of medical expense and health insurance

The tax bias toward employer and self employed health insurance relative to individual health insurance should be ended. And at the same time, HIPAA should be strengthened so that people who have developed a health condition under a group policy can buy a regular individual policy (and later change to another individual policy) without higher rates or being in a separate risk pool. HIPAA eligibles are responsible people who got their insurance through their jobs and should not be penalized unlike those who skip insurance altogether until they are sick. A reinsurance plan should be used to protect insurers against risk of too many HIPAA clients.

Also, the floor for medical insurance deductibility should be removed and health insurance and medically necessary health expense bededucted "above the line" by everyone including people who take the standard deduction.


Posted: Apr 29, 2005 By: A. Harvey Abernethy

Subject: The FairTax booms home ownership


File: The FairTax booms home ownership-Abernethy .doc
Posted: Apr 29, 2005 By: PENSCO Trust Compnay, Tom ANderson, CEO

Subject: Bush Administration’s savings proposals in its recommendations for tax reform

Comment: As the founder and President of PENSCO Trust Company, I want to join with the Savings Coalition of America to urge that the President’s Advisory Panel on Tax Reform include the Bush Administration’s savings proposals in its recommendations for tax reform. These proposals, the Lifetime Savings Accounts (LSA), Retirement Savings Accounts (RSA) and the Employer Retirement Savings Accounts (ERSA), simplify the current tax code and provide strong incentives for Americans to save.



Americans should be free to invest their retirement savings in all assets permitted under the regulations regarding IRAs and similar retirement products. These new vehicles should not be restricted to certain investment vehicles like 403-Bs (annuities) and 529 plans or mutual funds. The fact that most Americans in 401-k plans were limited to making choices within a group of mutual funds or their employers' stock, and could not choose assets like real estate or private investments, contributed to the loss of over $1.7 trillion in retirement plan wealth.



Fortunately, self-directed retirement plans provide Americans the flexibility to choose among all IRS permitted investments, allowing investors to truly diversify their investments. Such diversification provides an element of safety by incorporating asset classes such as real estate that do not move in tandem with other investment classes such as public stock. Real estate, for example, can serve as important hedge against sudden downturns in equities markets, protecting retirement savings.



Given that 44% of Americans' net worth per capita is associated with real estate (DOL, 2001) and that 83% of the estimated 25 million small businesses are funded by private investors, strengthening the rules that permit Americans to use retirement dollars for these types of investments must be a priority for our elected leaders. Companies like PENSCO Trust have been tireless advocates and educators for allowing Americans to invest as permitted by law.



Another issue we urge the Advisory Panel to judiciously consider is that one of the most significant barriers to the growth in Roth IRA savings has been restrictions on converting a traditional IRA to a Roth IRA. One must understand that when you withdraw funds from a deductible (traditional IRA), you must pay tax at your ordinary income tax rate. There is no income limit on such withdrawals. Therefore, it makes sense that there should be no income limit on the conversion of funds in a traditional IRA to a Roth IRA which also results in ordinary income tax on the amount converted. Yet, there currently is a limit of $100,000 modified adjusted gross income, on a single or married basis. Married couples filing separately are prohibited from converting. This clearly doesn't make any sense and we would support efforts by the Administration and Congress to change these rules.



On behalf of PENSCO Trust and the thousand of investors for whom we act as custodian, we urge the President’s Advisory Panel on Tax Reform to include the Bush Administration’s savings proposals in its recommendations for tax reform. We remain committed to being a strong voice for individual choice, flexibility, and control for individual retirement investments for all Americans.





Tom Anderson

President and CEO

PENSCO Trust Company

T 415.274.5600 ext. 5608

F 415.956.3016







www.PENSCOTrust.com

Mailing address:

PO Box 26903

San Francisco, CA 94126-6903

Overnight Address:

450 Sansome Street, 14th Floor

San Francisco, CA 94111-3306







Posted: Apr 29, 2005 By: Brian Dawson

Subject: Reform the income tax system

Comment: OK, so to fix the income tax system. Here is what you do.
Step 1: Eliminate the Interna revenue service completely. They have been running at a loss for several years. They have worn out their usefulness and aren't legally able to collect taxes anyway.
Step 2: To get revenue have a national sales tax that is paid on whatever is purchased. Keep it low because you will see that is an efficient way to produce revenue. Companies and corporations will be able to pass on savings for the production of poducts onto the consumers. Everyone will win!
Feel to mail me if you have any other questions.
BEST,
Dr. Brian Dawson DC


Posted: Apr 29, 2005 By: Linda Jolicoeur

Subject: Tax Reform

Comment: To The Committee:

The President has given you a difficult but not impossible task of reforming the American tax code. There is no disagreement on the fact that our system is broken, too complicated and costly to enforce. What is needed is an elimination of the current system and a totally new system that is fair, easy to understand by the taxpayer's, easy to administrate and less costly to the taxpayers.

I believe to attract jobs and be competitive in the new world economy we need a flat rate that cannot be tampered with and that everyone pays. The most logical idea I have heard presented is the national retail sales tax which would be paid at the time of consumption, no hidden taxes or fees to the buyers, eliminates tons of paperwork for businesses and individuals, and gets to the underground economy. This would also encourage savings and investment.

Low income individuals could be given a credit quarterly or at year's end but everyone would pay their fair share of the tax burdens, no tax shelter's for rich but by the very nature of the plan they would pay more because they spend more.

The best legacy we can leave our children and our grandchildren is a tax system more in keeping with the ideals of the founding fathers. If you have any questions on my comments my contact information is listed below.

Linda Jolicoeur, President
Target Equipment Leasing, Inc.
28535 Orchard Lake Rd. Suite 300
Farmington Hills, MI 48334
248.553.0444
248.553.0508 fax
linda@targetlsg.com




Posted: Apr 29, 2005 By: HIGHLAND ENGINEERING, INC

Subject: taxes

Comment: We have reviewed the proposed "Fair Tax" proposal and believe it is a great system.
Please recommend adoption of this tax system.

Posted: Apr 29, 2005 By: jim shrum

Subject: yes to the fair tax HR 25


Posted: Apr 29, 2005 By: Joel A. Osborne

Subject: Fair Tax Plan

Comment: Ladies and Gentlemen:
I am a strong proponent of the Fair Tax Plan currently before the Senate and House as S25/HR25. I believe this plan is well thought out, accomplishes many goals relative to an overhaul of our current tax situation, and provides a simple method for the government to fund its operations. Opportunities for the underground systems to avoid taxation will be eliminated, since if an individual consumes goods in the US he would be paying taxes through this system. I hope that the recommendations of your panel conclude that this is the appropriate direction for the country to head. Thank you

Posted: Apr 29, 2005 By: Human Rights Campaign

Subject: Human Rights Campaign Comment Letter


File: HRCCommentLetter42905.pdf
Posted: Apr 29, 2005 By: Steven H. Weinraub

Subject: Tax Reform

Comment: Dear Tax Reform Panel,

I am an income tax preparer in the state of California, and have been
working in this profession for almost 30 years. Consequently, I am
experienced with the workings of the U.S. tax code and the forms and
procedures of U.S. tax system.

I have also been the treasurer of two condominium complexes and am quite
experienced in how the management and financial matters of condominiums
work.

In terms of correcting the U.S. tax system, I see a connection between the
way a condominium raises the money from its owners to pay for the common
obligations of the building (including the reserve fund for any contingency
expenses) and the way that the U.S. tax system raises money from its
citizens to pay for the total obligations of this country. Basically, the
managers of the condominium complex determine the total amount needed to
operate the complex and then divide this amount by the number of condominium
units in the complex. It doesn't matter how large the units are or how many
bedrooms they each have. Each separate unit pays an equal amount because
they are equal owners of the entire building. Hypothetically, if the
building needs to raise $100,000 and there are 25 units in the building,
then each unit owner pays $4,000 per year to cover the cost of the operation
of the building. The unit owners have the choice of paying this amount
annually, monthly, etc.

In my opinion, it should be the same for operating the financial burdens of
this country. The general accounting office (GAO) should determine the
entire budget needed per year to pay for everything necessary to run this
country....this includes the military, Social Security benefits, Medicare,
welfare, potential national healthcare, and etc. Then, my suggestion is
that the administrators of the tax system should subtract from this total
all estimated revenue raised from businesses and corporations according to
the present system of taxing these entities. In other words, nothing
changes as to the system of taxing businesses and organizations or entities,
that are necessary to allow for limited liability. The net difference or
balance should then be raised from the individual taxpayers. My suggestion
is that this net amount is divided among all the citizens and residents of
the U.S.,with a valid identification number, between a certain age, (i.e.,
between ages 18 and 65). In other words, it is my opinion that if we are
all citizens or residents of this country, we should each be equally
responsible for paying the taxes necessary to operate this country.
Hypothetically, if the net difference comes out to about $5,000 per U.S.
citizen or resident, then each person should be responsible to pay this
amount per year. Obviously, any person who is "rich" would pay their $5,000
per year quite happily and without regret by sending in their money after
receiving their annual bill from the I.R.S. This payment can be paid in a
lump sum, semi-annually, quarterly or, for employees, withheld from their
paychecks through the present payroll system.

The problem is that "poor" people would not be able to pay their share. My
suggestion as a way to resolve this is to determine the definition of what
it means to be "rich" or "poor". Poor people should be able