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Request for Comments #2 (Specific proposals to reform the tax code)
from Business Group
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| Posted: Apr 25, 2005 |
By: Richard Potter |
Subject: Request for Comments #2
Comment: Dear Sirs-
Please find attached my business submission for Request for Comments #2.
Thank you,
Richard Potter
RE/MAX Alliance
Mainland Mortgage Corp
Oceanside Title Services
954-343-8325 Direct
954-343-8326 Fax
954-609-6813 Mobile
OUTSTANDING AGENTS. OUTSTANDING RESULTS.
File: TAX REFORM1.doc
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| Posted: Apr 25, 2005 |
By: David Gold |
Subject: Comments Attached
Comment: See attached. Please contact me with any questions.
David Gold
303-947-8222
File: Comments for Presidents Advisory Board.doc
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| Posted: Apr 25, 2005 |
By: George R. Zadigian |
Subject: Federal Tax Reform Idea
Comment: To: Chairman and Vice-Chairman Connie Mack III and John Breaux
Federal Tax Reform Advisory Panel
Subject: An Simple Idea for Significantly Improving US Tax Policy
I would greatly appreciate it if you would please consider the attached memo, which describes a creative and viable way to make US Tax Policy better serve the interests of the United States, and provide more effective long term stimulus to the growth of our economy. Please do give it some thought, as the benefits to our country, on a number of fronts, would be very significant. Thank you for all you hard work on behalf of us all. Please don't hesitate to contact me should you have any questions or wish to discuss these alternative tax solutions.
George R. Zadigian
President - Inflection Point, LLC
1023 Federal Ave.
Alliance, Ohio 44601
330-353-2881 work
330-823-1424 home
gzadigian@sbcglobal.net
File: Federal Tax Reform - Income and Energy Taxes.doc
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| Posted: Apr 25, 2005 |
By: gary T. Hollander |
Subject: taxes
Comment: I believe that the tax system is unfair. It is also unitelligable. thechanges that I recommend are: (1) a sales tax to be paid up front on the purchase of all goods and services with the price broken into three parts-the actual price, the tax, and the payable total and (2) that everybody will pay the tax- thus NO subsidies for anything. this will work to keep everyone taxes as low as possible. I am against a vat, although Euroope likes this system and itmight make trade easier. My objections are two-fold-1st the tax can be manipulated by congress, the congessional staff or other bureeaucrats out of the public eye and 2nd the buyer will not know the extent of the taxation. in other words if you raise everyones taxes every one should see it upfront.
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| Posted: Apr 26, 2005 |
By: Ken Brownlow |
Subject: Tax Reform
Comment: please see attached file
File: KenBTaxReformInput.doc
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| Posted: Apr 26, 2005 |
By: BetterWay! Enterprises |
Subject: Tax reform
Comment: The FairTax plan which eliminates the IRS and institutes a 23% national sales tax is the best program for EVERY American, rich or poor, and for EVERY American business.
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| Posted: Apr 26, 2005 |
By: Vicki VanDenBerg |
Subject: Fair Tax
Comment: Dear Government,
It is important for you to make good, bold decisions regarding the economic health of the USA. The national sales tax, Fair Tax, proposal will create jobs and stimulate the economy. Getting rid of the IRS needs to be a priority of yours.
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| Posted: Apr 26, 2005 |
By: Don Dixon |
Subject: Tax reform
Comment: Attached are my recommendations for tax reform.
Respectfully,
Don Dixon
919 967-7133
The capacity to help make the world kinder
and at the same time more efficient is a true measure of wisdom.
- D.D.
I am in favor of a combination of the following tax concepts. Considerations for each of the concepts are also given.
1. A federal sales tax
a. Exclude food, rent, medical services, prescriptions, insurance premiums, school tuition, sale of residency, and materials used for resale
b. Maintain rate as low as possible considering there are two other tax programs to obtain income from. I have lived in the Bahamas where the import taxes, which work very similar to a consumption tax as most items are imported, stymied expansion of the economy. In order to prevent an economic slowdown, it is very important to keep the sales tax low
c. Do not include items that would normally be considered as a capital gains sale
2. A flat rate income tax
a. Starting at 20% above poverty level
b. Maintain rate as low as possible considering there are two other tax programs to obtain income from
c. Do not include Medicare payments or Medicaid subsides as income
d. Do not include items as income that would normally be considered capital gains
3. A business tax model similar to the one we currently have
a. Eliminate loopholes that have allowed extreme levels of tax avoidance
b. Maybe consider an Alternative Minimum Tax for businesses
c. Keep capital gains taxes as low as possible
d. In order to keep the economy moving, offer a investment credit
4. Eliminate or reduce the inheritance tax to 15% or less
5. A capital gains tax of 5%
Don Dixon
919 451-3375 cell
919 967-5360 fax
Truth resides on a slippery slope, for emotions, beliefs, and desires alter one's perception of it.
- D.D.
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| Posted: Apr 26, 2005 |
By: UniversalTax.com |
Subject: Complete Tax Replacement Proposal
Comment: Website at www.UniversalTax.com
A revenue neutral tax proposal that eliminates the need for record keeping and tax form filing and will save the economy upward of $1.5 trillion per year in current dollars. It fully supports charitable giving and provides for compensation for affected workers that will lose their employment in tax related jobs eliminated by UniversalTax.com
Submitted by Alf Temme of UniversalTax.com
File: UniversalTaxproposal.doc
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| Posted: Apr 26, 2005 |
By: J.C. King |
Subject: FairTax
Comment: I have for 58 years lamented over our countrys Tax system. Finally, I have seen something that not only makes simple since but will benefit all Americans, regardless of their income level. That is the FairTax legislation HR25/S25. It will take courage and commitment to make this the top of your recommendation list but it should and must be done. I have talked to many people not only in N.C. but from AZ, CA IL and TX that, once they have looked at it, do not see it as they way to go. Please take a close look and support the FairTax.
J.C. King
336-595-2491
6631 Riverwood Rd
Walkertown, NC 27051
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| Posted: Apr 26, 2005 |
By: Travelandcruiseonline.com |
Subject: The Fair Tax
Comment: It's time to end unfair, confiscatory taxation and redistribution of income. The Fair Tax proposal is the only tax reform that will really work for our country.With it even illegal aliens and criminals pay taxes. Get rid of the IRS,and death taxes.It's time to level the playing field. Let everyone pay their real share with the fair tax and ONLY the fair tax.
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| Posted: Apr 26, 2005 |
By: Alpha Consulting Services LLC |
Subject: Replace Current Tax Code with FairTax Proposal
Comment: I also responded as an individual, but feel I should make my voice heard as a small business owner. I am truly disgusted that we/Congress has allowed the tax system to evolve uncontrolably into a incomprehendible tome of 60,000 pages of brivel that is wasteful and unfair and an immense drag on the very economy of the society it is supposed to support and fuel. The FairTax proposal for a national sales tax sounds like a truly reasonable solution. I urge it adoption.
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| Posted: Apr 27, 2005 |
By: richard flener |
Subject: income taxes
Comment: As a small businessman annually overwhelmed by the mass of paperwork to complete my taxes, I urge you to consider abolishing the IRS altogether and adopting a more simplifying method of collecting taxes such as a national sales tax payable directly to the government. This would produce huge amounts of added revenue and relieve us of the burden we now face each year. Please consider the FAIRTAX proposal. Thank you, Richard Flener
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| Posted: Apr 27, 2005 |
By: A. Harvey Abernethy |
Subject: FairTax Act H.R.25/S.25
Comment: Dear Advisory Panel:
I am a REALTOR and a builder of homes and apartments. I have studied the Fair Tax for three years. The attached file expresses my firm belief that the Fair Tax Act HR25/S25 not only makes the mortgage interest deduction for homehoweship meaningless, but the adoption of the Fair Tax will casue a boom to homeownership due the dramatic reduction that one will have to spend from their Speadable income to make thier house payments.
File: CurrentTaxSystemHurtsHomwownership.doc
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| Posted: Apr 27, 2005 |
By: Robert J. Doyle |
Subject: Communications Suggestion
Comment: Learning from the difficulty that ANY change encounters [Social Security],
I would urge:
1. The panel builds an immediate project plan to PILOT individuals' and businesses'
particiaption in a model sample of potential changes. Specifically, these people woulde use past years tax submissions and model them under the possible set of changes.
2. Funding be established for University participation on a regional basis to engage the communications process. In this step, business faculty and graduate students would steer step 1 above.
3. A Web site be immediately funded to allow wider participation and dissemination of information to the press and public. Individual registration is encouraged to prevent distortion.
Under full disclosure, I am an owner of
DiscoverWhy. The firm has worked in real time, political, media, and consumer Web based polling. For example we worked with MSNBC during the Bush /Gore debates of 2000 to give MSNBC a real time analysis of the public response to the debate.
Poling panels can be put on-line, and other citizens could then react with the on-line panel group.
In summary, communications is an imperative step to overcome the fear of change. Participation by recognized schools would provide an independence, that could make the public more comfortable.
Regards,
Robert J. Doyle
Wilmington, Delaware
302.559.3859
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| Posted: Apr 27, 2005 |
By: Jeffrey G. Locke |
Subject: FairTax Proposal
File: ResponsetoRequestforComments.doc
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| Posted: Apr 27, 2005 |
By: Jim Johnson & Co. |
Subject: Self-Employment Tax
File: SETaxReformProposal.doc
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| Posted: Apr 28, 2005 |
By: Timothy J. Gillis |
Subject: RPUT – Tax Reform/Research Project
Comment:
TO: President’s Advisory Panel on Federal Tax Reform
Good Members of the Advisory Panel:
The attached submission is a conceptual overview of a proposed system to replace the current federal income tax. The proposed reform is the result of an extensive research project which resulted in a completed thesis and published book.
Extensive information on this reform has previously been provided academics, independent political think tanks, policy makers, the media and the general public. We are indeed honored to introduce the new ideas and concepts associated with this reform to your panel at this important time.
Our research entailed a comprehensive review of taxation in America. The principles on which a sound tax system should be based, as well as the specific reform measure, are presented in our thesis. We very definitely suggest, after you review the attached submission, that we provide you with an in-person presentation on this most important project.
Please have your staff coordinate with us on a date and time that would be convenient.
Sincerely,
Timothy J. Gillis, Director
The RPUT Project
Maximus Profectus
858-492-9341
info@rput.com
File: RPUT_Tax_Reform.doc
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| Posted: Apr 28, 2005 |
By: Richard T. Ainsworth |
Subject: Digital VAT
File: DIGITALVATPresidentsAdvisoryPanelfinal.doc
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| Posted: Apr 28, 2005 |
By: Phil Hinson |
Subject: Tax Reform Proposal
Comment: See upload.
Phil Hinson 770-656-1187.
File: PresidentsTaxCommissionII.doc
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| Posted: Apr 29, 2005 |
By: Bracken Enterprises, Inc |
Subject: H.R. 25 The FairTax
File: HR25.doc
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| Posted: Apr 29, 2005 |
By: ALEXANDER A. ROSSETTI, SR. |
Subject: FLAT TAX
Comment: AS A TAX PRACTITIONER, THE ONLY FAIR TAX IS ONE THAT TAXES EVERYONE EQUALLY. THERE COULD BE AN INCOME EXEMPTION FLOOR, SAY $30,000 OR $40,OOO. AS FOR BUSINESS,THEIR COST OF DOING BUSINESS WOULD HAVE TO BE CONSIDERED OR HAVE A LOWER GROSS RECEIPTS TAX FOR THEM. THIS WOULD ELIMINATE THE CLASS ENVY THAT HAS SO PROLIFERATED OUR SOCIETY AND THAT HELPED CREATE THIS MONSTEROUS TAX CODE. EACH TIME THE EXISTING CODE IS "SIMPLIFIED," IT GROWS IN VOLUME WITH MORE CONTRADICTIONS AMD MULTIPLE INTERPRETATIONS. IN THE LONG RUN, IRS WOULD COLLECT MORE TAXES, WITH MUCH LESS EXPENSE!! SET UP A RETRAINING PROGRAM FOR THE IRS EMPLOYEES WHO WOULD NOT BE NEEDED. IMPLEMENTING THIS, MR. BUSH, ALONG WITH A SUCCESSFUL SOCIAL SECURITY REFORM ALONG YOUR GUIDELINES, YOU WOULD REPLACE FRANKLIN ROOSEVELT AS A REAL COMPASSIONATE PRESIDENT AND CONGRESS COULD MAKE HISTORY.
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| Posted: Apr 29, 2005 |
By: Bryan Rubingh |
Subject: Web page doesn't work!
Comment: I've tried and tried to attach a file, but it won't work. It brings me to a page which lists the errors. Please email me (brubingh@tds.net) and let me know how to send you a file with my comments.
Thanks,
Bryan Rubingh
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| Posted: Apr 29, 2005 |
By: Mark J. Silverman & Philip R. West |
Subject: Corporate Capital Gains
File: CorpCapGains.PDF
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| Posted: Apr 29, 2005 |
By: Duke Energy |
Subject: Proposal to Reform the Tax Code- Duke Energy
Comment: Duke Energy Corporation hereby submits the attached comments in response to the President's Advisory Panel on Federal Tax Reform's second request for comments. Duke Energy Corporation is in the "Business" category of submitters. If you have any questions about this submission, please contact Dave Mitchell, Director, Federal Governmental Affairs, at 202-331-8090.
File: ProposalforTaxReformDuke050429.doc
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| Posted: Apr 29, 2005 |
By: Joseph M. Mikrut and Jonathan Talisman |
Subject: Proposal to Provide Fair Treatment of Incentive Stock Options under AMT
File: CapitolTaxPartnersCommentsProposaltoReformTaxCode.doc
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| Posted: Apr 29, 2005 |
By: Paul Justus |
Subject: Tax Reform
File: PresidentsAdvisoryCommitteeonTaxReform.doc
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| Posted: Apr 29, 2005 |
By: Brian G. Isaacson |
Subject: Alternative Minimum Tax
File: CommentreSpecificProposaltoReformAMT.pdf
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| Posted: Apr 29, 2005 |
By: Ron Stram |
Subject: tax reform
Comment: April 28th, 2005 Ron Stram
3108 Village 3
Camarillo
CA 93012
Tel# 805/484-1253
Re: Tax Reform.
Dear Panel Members;
I have just read an article in last Sunday's L.A. Times about your solicitation of public input for tax reform with a Friday email deadline. I have recently retired from the business of preparing income tax returns for the public after 31 tax seasons, and I have a BA in economics from UC Santa Barbara class of 1970. Also, I have always had a keen interest in tax reform and I will try to give you my ideas in this limited space and time.
Apparently the ground rules are: simplicity, progressive rates, and protecting home mortgage interest and charitable deductions. These parameters already create their own problems. Simplicity and progressive rates do not go hand in hand, although I will try to consolidate these approaches (see wages below). I don't think anyone has a problem with a home mortgage interest deduction, but keeping charitable contributions is politically motivated and therefore biased. Bias is what keeps the tax code so complicated. I will attempt to give you my line-by-line analysis of 1040 highlights as briefly as such a complicated subject will allow, with alternatives where possible to stay within your parameters. Also, I do not have all the facts and figures I would need to be truly detailed, so I will try to state my position in general terms wherever possible.
Presidential Election Campaign
Matching funds are not determined by answering this question. This is just some kind of poll. It can be eliminated.
Filing Status
All the juggling of deductions and exemptions and various limits put on single, married, married filing seperately, head of household and qualifying widow(er) can be eliminated by getting rid of the joint return. Several non-community property states do this already, allowing married people to combine their numbers if they want, without penalty. The standard deduction and personal exemptions should be adjusted higher in any case (see below), and this would make the advantage of the Head of Household and Qualifying Widow(er) status unnecessary.
Wages
All taxes are regressive by nature. Some hurt the economy more than others. A tax on earned income is the most regressive of all. When you start out in life working, that's the time you can least afford to pay tax. This tax was last instituted to fund WWI, and should be fair game during national emergencies, but otherwise it shouldn't even exist whenever we can afford not to have it.
Their are two major schools of thought on how the American people should be taxed:
A. The wealthier citizens have benefited the most from our system and should pay a progressive tax rate; and
B. It's prejudicial to tax different citizens at different rates (flat tax).
I believe it's possible to incorporate both these positions by taxing different kinds of income at different rates, and adding a limited national sales tax. The rate on earned income should be as low as possible, to be determined by tax revenue collected from other proposals (see items below).
Interest and Dividends
Interest on the national debt is about 12% of the federal budget. A flat tax on interest and dividends could be collected by banks and brokerage houses, perhaps at a rate that would pay for this part of the budget. If a taxpayer doesn't have adjustments in this category this income may not have to be on the return at all. That would be most people.
For others, schedule B should be a place where they can deduct investment interest. Investment interest is a business expense, and it should be treated as such.
Taxable State Refunds
States have three main ways of collecting revenue: income taxes, sales taxes, and property taxes. You used to be able to deduct any and all of them, and that was fair because each state levied each type of tax differently. Then the sales tax was eliminated, advantaging some states at the expense of others. Recently the sales tax deduction has been reintroduced in a limited way as an option in lieu of income tax, but this still is not a fair solution, especially if you live in New Hampshire where there is no property tax. The argument for this whole category is one of double taxation; using previously taxed income to pay other taxes. It's not a good argument, however. We pay all kinds of excise taxes and 'fees' that are not deductible. And these taxing agencies are state, not federal. To properly compute the amount of income to report you need to go through a complicated tax benefit calculation which most people will not know or care to do; instead they just report the whole thing. The best solution for this category is not to allow a deduction for state taxes at all.
Alimony, Business, Rentals
Alimony has been ajudicated into the class of earned income. You can fund an IRA based on alimony income. It should be a schedule C item, allowing legal expenses, etc., and the net subject to social security tax.
One of the most complicated parts of schedule C is depreciation. I have never met one lay person that understands it. Tabulate all assets into narrow life ranges with some wiggle room, and allow straight-line, 150% remaining balance, or 200% remaining balance with optional mid-year convention and leave it at that. Use the old investment tax credit to stimulate the economy when that's what's needed instead of fiddling with depreciation. Also, remove the luxury auto limits; they're completely antiquated and were too low even back when they were first initiated.
Owning and operating a rental property is in reality an active business. Net profit is not subject to social security tax, but it should be. Owners argue that it's their capital investment that's doing the work, but it's no different from a factory that uses machinery to manufacture widgets. Allow rental property owners to amortize their land investment and then tax the net profit like any other business.
There are lots of other issues in this category, but I do not have time here to cover them all. You get the idea, though. Make rules uniform, apply them equally, and simplify procedures wherever possible.
Capital Gains and Losses
This is another category that should be subject to a flat tax. The only fair way to report long-term gains, however, is to reduce them by some sort of inflation factor before computing the tax. Also, the $3,000-/year capital loss limitation should be eliminated. A loss in this area is a loss from an activity that was conducted for profit, and it should be deducted in totem, just like any other business loss. I would add here that employee stock options might be recharacterized as capital transactions and subject to this flat tax if tax rates on earnings end up being less.
Pensions
All pensions are made up of original contributions and accumulated interest that has been allowed to compound without the handicap of annual taxation. I propose that all pension withdrawals be tax free up to the amounts of the original contributions, similar to the old "three-year rule" of computing the taxability of pensions, except without the three-year part. Then the remaining distributions could be taxed at the flat interest rate. The standard deduction and personal exemption would still protect lower income seniors from paying any tax.
This would work with social security, too. In fact, when it comes to 'ownership' of your social security account, the original contribution amount could be refundable to a person's estate if they didn't survive long enough to collect it. The average social security account consists of about 15% of original contributions.
Social Security
Social security, medicare and medicaid are all hot button issues right now. Without trying to sound political, the bottom line is that these programs are supposed to be self-sustaining. These monies should remain segregated and not go into the general fund. The number of people covered, the income levels subject to tax, and the distribution of benefits can all be tweaked to keep the program solvent.
In addition, all programs that exist for the benefit of employees should be funded by those employees. That would be all of social security (not just half), and unemployment insurance. This would create a more fair system less subject to employer abuse, and make it easier for small businesses to start and operate. Corporate tax rates could be adjusted upwards to recoup an employer windfall until the market readjusts to a different wage structure, and taxpayer rates could be adjusted down to compensate and make this transition revenue neutral.
Unemployment Compensation
The biggest problem with taxing this is that it's usually not subject to withholding, and by the time a taxpayer files their return they've been out of work for some period of time and are less able to pay their tax or they won't receive a much needed refund. If you're going to tax it, it should be subject to mandatory withholding.
Adjustments to Income
All job and investment related expenses should be allowed above the line, similar to the old 2106 rules but with investment expenses added. Some kind of small deductible could apply, like $500- or $1,000-, to eliminate the paperwork needed to claim minor expenses.
Pension rules are very complicated and applied unfairly in the tax code between working people and business owners. A salaried person has all kinds of limits to follow to determine if they can even have an additional plan outside of work, whereas a business owner can use defined benefit plans and the like to deduct up to 30% of net profit, even more in some cases. Create a fixed percentage of income for everyone that can be set aside for retirement; then, if an employer isn't allowing that much in their plan, a person can open a deductible IRA for any part of the balance that they feel they can afford. Eliminate defined benefit and defined contribution plans; make all payments voluntary and flexible.
If you want to promote health insurance, allow everyone to deduct their health insurance premiums in total here. Also, allow all health insurance plans to qualify for HSA accounts.
Eliminate the penalty on early withdrawal of savings by having banks report CD interest as earned according to constructive receipt rules, i.e. the amount of interest actually earned if the taxpayer had withdrawn it.
Deductions
You can't get rid of the medical deduction as long as the medical industry is operated by the private sector. People are always going to have major medical expenses that they have to pay, and they must be able to deduct them from their taxable income.
Nobody wants to get rid of the home mortgage interest deduction. Everyone should have systemic help in acquiring and holding on to a home of their own. But a second home? And what about the QMI rules, limiting the home equity loan interest deduction to the interest generated by the first $100,000-, regardless of rates. A more than fair approach would be to limit debt service to $750,000- in mortgages ($1.5M for combined returns), but applied to all homes of the taxpayer(s), and eliminate the QMI rules.
This administration's bias is to let religious organizations do the government's social work and to subsidize them. In addition to that, subsidies are only being given to protestant Christian churches, another bias. I believe in the separation of church and state, and that charity is just that, charity. There shouldn't be any deduction for it at all, except on estate returns. This is not one of the choices however. I therefore propose that a 10% AGI limit be imposed on this deduction, similar to casualties. This would eliminate most taxpayers taking a deduction in this category, except those that tithe more than 10%. This is also probably the most abused deduction, as the fair market value of donated property is extremely subjective.
I've hardly seen a casualty loss deduction since the rules were changed to apply a 10% AGI deductible for each event. The 10% AGI deductible is probably okay, but I have seen clients with multiple events in one year and I do believe the per event limitation should be removed.
The phase-out on schedule A for high income people should be eliminated. There are already limitations built in to the medical, mortgage, and casualty sections. If you eliminate state taxes, put investment interest on schedule B, put a deductible on charity, and move miscellaneous job and investment related expenses above the line you don't need a phase-out.
Standard Deduction & Personal Exemption
The standard deduction and personal exemptions should be set at such a level that someone living below the poverty line does not have to pay any tax. Now you say, that's about what it is currently, but that's not true. The original 'poverty level' was calculated by a clerk who figured out how much it cost to eat in a year, and this figure has been adjusted for inflation ever since. The reality is that a single person working full time for minimum wages cannot afford a studio apartment in almost all metropolitan districts and still have enough money left over for the basics of life. Redefine what the poverty line should be and then compute what the standard deduction and personal exemptions should be. Don't phase out personal exemptions for high income people; they all consider this very unfair.
(Note: inflation adjusters are out of whack, too.)
Net Operating Loss
This should be based on the bottom line, after deductions and exemptions and without regard to business applicability. After all, as far as Uncle Sam is concerned, you are the business. You should also be allowed to carry it forward indefinitely.
AMT
The alternative minimum tax was instated to make sure wealthy people paid some tax. The common misbelief was that some savvy investors could invest in things with so much write-off that they ended up not ever owing any tax. Well, the economic reality of this is that the money goes directly into stimulating the economy (except for obviously fraudulent schemes). So what if a few people don't owe any income tax in a particular year; their money is probably doing more good for the economy as venture capital than channeling it through government. It's not even necessary to discuss bracket creep and a plethora of unbelievably complex rule changes. Abolish the AMT.
Foreign Tax Credit
Foreign taxes paid should be a 100% credit of U.S. tax rates if the same income is being taxed, without the complicated formulas tied to deductions. You should be able to carry unused credit forward indefinitely. You should also be allowed to claim some amount without having to file form 1116 as many people have minor amounts reported through mutual funds with foreign holdings. There actually is a way to do that now up to $400, but you have to file a separate piece of paper to do it quoting the regulation; that shouldn't be necessary.
Child Care Credit
If you want to be family friendly, don't limit the credit to two children; and increase the limit per child to accurately reflect actual child care costs for two full-time working adults.
Additional Tax on IRAs
The early withdrawal penalty on IRAs is draconian. I've seen families in real binds having to use these funds and then get saddled with federal and state income and penalty taxes up to 50% of withdrawals when they can least afford it. They know it's their retirement account; that's why they funded it in the first place. It's enough to tax the proceeds.
Same argument regarding seniors who don't take enough money out of their IRAs after age 70 1/2. It's hard enough being old and it's their money; let them handle it.
Household Employment Taxes
The rules for household employees are too complicated for the general public. Most people ignore them; and a lot of people just pay cash and forget about it. It's not hard to give someone a form 1099, however, and let them figure their own taxes. Change the rules to allow people to issue a 1099 to household help, even if they are their only employer. The wage versus tax situation will sort itself out, and compliance will go way up.
Earned Income Credit
This program was supposed to rebate a low income worker's social security tax if they had children while still crediting their social security account. Since it's inception it has been expanded and naturally made more complicated, so that now a low income person generally has to pay for professional help to get what they're entitled to. Go to the basics on this one. Rebate actual social security tax withheld, with some kind of simple phase-out based on redefined poverty lines.
Estimated Taxes
It's unfair and unreasonably complicated to use different parameters for calculating next year's estimates for high income people. 100% of last year's tax or 80% of what you end up owing should be good enough for everybody.
VAT
I saw the value added tax at work in England many years ago. It was very high, about 35%. It would have to be very high here too to replace the income tax; I've seen estimates of 25%. It was extremely regressive in England, putting hard brakes on all new purchases. The second-hand market, however, was thriving, where there were no taxes at all. I do believe a national sales tax has a place, but to be enforceable and accepted it has to be in the same range as states use today. Perhaps the rate could be tied to expenditures in social-aid programs, about 8% of the budget.
In conclusion, the above just touches the surface of the problem. This is a very large and complex economy. It would be to everyone's benefit to eliminate all special interests in the tax code. If that's not possible, keeping them down to the barest minimum will delay the inertia of future complications that always result from some people getting favored treatment. I hope my contribution is of help.
Good luck!
Ron Stram
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| Posted: May 04, 2005 |
By: Bryan Rubingh |
Subject: Tax Reform Proposal
File: TaxRefProp3.doc
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| Posted: May 04, 2005 |
By: FRANK REGINALD WALL |
Subject: Position Statement on Fundamental Tax Reform
Comment:
Position Statement on Federal Revenue
It is inconceivable that we as Constitutionally-based sovereign citizens in and of the United States of America — “the land of the free and home of the brave” — have allowed our leadership to espouse and nurture a cruel, inequitable, ambiguous federal (revenue) tax system. And that those, our representatives given a position of trust, have created an income tax system for our federal revenue. This seemingly brilliant means of funding our government was flawed at its onset and generated a grossly counter-productive, parasitic—political culture that was once a “sleeping giant” and that has grown into a hideous monster. This economic incarceration has eroded the very character of our nation these past nine decades… The intrusive federal income tax and its little sisters, the corresponding state income taxes take away every aspect of sovereign privacy and proprietorship. A fairly recent invention, the deceptive, with-holding of income scheme (withholding tax) is robbing incubator, and start-ups in our national commerce — is denying small businesses of valuable resource.
There is everything fundamental wrong in a tax system—the income tax—that induces ordinary, hard-working, productive and basically honest American citizens to allegedly “lie and cheat” in order to keep what is rightfully theirs in the first place: hard-earned wages and proprietary income — the fruits of creativity, fortune and industry.
Why is the present tax system allowed to co-exist with all the other tax schemes and diverse means created to progressively “pick the pockets” of producers? Why? Because an elite, privileged few can use such a gargantuan, economic “black cloud” to envelope the substance of many to further their own agenda and redistribute wealth in such a manner as to create a social strata to further their own ends— ways and means…
The income tax is a predatory system…
The income tax system with all of its Pandora’s Box of schemes, manipulations and injustices has caused our great nation to become a breeding ground for a host of the malcontent, the despondent and the proverbial “sluggard.” Our nation prospers in spite of the income tax — federal/states’ revenue system, not because of it. We are calling for “revenue neutral” when we should be seeking “revenue transparent” both income and disbursement. — “Observe the ant…” — “A laborer is worthy of his hire.”
It is insulting to the national intelligence to keep recycling the mantra of “the existing income tax system is unnecessarily complex, causes many headache and economic heartaches, and thus is burdening the taxpayers…” — No Kidding; what’s new? “All aspects of the income tax (IT) system and the IT financial/political counter-culture are unfair.” — Really now… tell me something I don’t already know. The only goal the Presidential Tax Reform Panel should have is to get rid of IT — the income tax and immediately (not piecemeal) replace IT with a national retail sales tax, the Fair Tax.
Let me make it very clear lest we get politically derailed. The only true goal of the President’s tax reform commission should be to get rid of the income tax and IRS.
Cease & Desist the income tax forever…
Following are specific examples of how the income tax (IT) code and its enforcement arms, the IRS and the Justice Department, federal and corresponding state agencies, et al destroy an America citizen’s life, security, livelihood and “pursuit of happiness.”
As far as I’m concerned, everything about the income tax system is flawed, uniformly pervasive and unequivocally unfair. IT is a “cash cow” for politicians to steal from me
(Continued) —
without my avowed knowledge or even my permission. From birth my substance has been systematically undermined… My rightful heritage has been disfranchised, and my privacy has been rudely and unjustly stripped — all without my avowed permission — all over my vehement protests… verbalized by speech and in much writing.
Do I expect any good to come out of my testimony? No I do not; I only expect more stalls, more delays, more hearings and more “red herring” proposals. In other words, “full of sound and fury, signifying nothing.” — Mr. President, prove me wrong; please!
DISTRIBUTE THIS FAR AND WIDE —
It shows why Congress & federal employees DON’T CARE ABOUT the rest of us…
…The average Congressional pension is $53,000 compared to Social Security at $21,900 annually… 2.4 times as much! — Published in the Home News Tribune March 21, 2005 called “Congress members savor perk of a lifetime…” and the perks are referred to as a “Platinum Parachute” — should Congress members and federal government employees change the “status quo” – Why? — They have no incentive!
PROPOSAL
Comprehensive Reform of the federal revenue system —
Via the Presidential Tax Reform Commission — President George W. Bush, the floor of the United States Congress (vs. “buried in committee”) and the American local/national news media — the insidious federal income tax code should be forthwith “sunset” — a political stall term until it really happens — and Internal Revenue Service (IRS) should be forthwith abolished along with its charter — eliminated forever. The IRS and its counter-culture has orchestrated fear through intimidation and caused true hardship, loss of life—livelihood.
PROPOSAL (continued)
Comprehensive Reform… the Fair Tax – practical, viable —
The only immediate, practical solution is the Fair Tax Act — S/H.R.25 — a viable, studied and eminent solution. IRS agents can become Border Patrol agents not unlike the recent “Minute Men” voluntarily deployed throughout the Southwest border with Mexico. All they need (or deserve) is “guard shacks” — signal mirrors, cell phones and potable water. IRS agents would need minimal training — be spaced every half-mile — with three work shifts.
Comprehensive Reform… consumption tax transition —
Going from an income tax system to the Fair Tax would immediately free up resources for increased value-added productivity. Congress is resistant to the obvious, why? — Because it’s been said, “Give a people a glimmer of hope for freedom and they’ll want it all.” — The Berlin Wall is one perfect example… after former President Reagan’s famous “… Tear down this wall.” Congress knows this (as well as the “beltway crowd”) and their game of entitlement and power will be taken away by a consumption tax. – “He who has the gold, makes the rules.” – Control is everything: people will regain control of their government.
One doesn’t need to study the Fair Tax any longer… it’s been eminently studied to death. One doesn’t need to educate Congress either. I personally visited every each and every member of Congress and committee directors, the presidential administration and cabinet officials, the U.S. Supreme Court, the Washington, DC press corps, and made one-on-one presentations to all. In the spring and summer (ten weeks total) just before the terrorist attacks of 9/11, I made 620 presentations (core time - six minutes) and hand-carried and delivered 840 Executive folders on fundamental tax reform — the national retail sales tax and the Fair Tax proposals… in-depth with executive summaries and press releases. For each, I ensured that the time, date and contact was so noted and signed-off by the U.S. Congress, et al official… there is no question that the knowledge is out… no excuses!
PROPOSAL (continued)
Comprehensive Reform… “How long” in recent history? —
Not only has the income tax wasted time of taxpayer citizens, but since the early 1990’s, at every session of Congress and every political cycle and every administration have many thousands of people taken their own time—away from families/jobs and productive labor— visiting, calling, writing, and indirectly and directly calling for substantive, true tax reform.
Comprehensive Reform… How many proponents? —
Americans for Fair Taxation, the National Retail Sales Tax Alliance, the National Taxpayers Union, Americans for Tax Reform, We The People, and on-and-on … including U.S. citizen taxpayer activists have visited the Hill, emailed consistently, called incessantly, conducted hearings, testified at Congressional hearings, and on-and-on… much weariness, time well spent or wasted, and being “yelled at on the phone” as President Bush’s advisor Karl Rove has done with me after receiving a multiplicity of emails, then been overloaded with faxes.
Why all this effort? Because of the “black hole” of apathy on the part of our government when dealing with “the rest of the people” meaning anyone outside the DC beltway or the beltway structure such as “The Income Tax People” – H&R Block, and all the facilitators.
Why all this effort for the obvious?
Because of the communist plank, “Give me two generations of your youth…” — As a nation, we’ve been brain-washed into believing that the income tax is the only way to go, and all the deductions. Who knows what their gross wage is, most only know what their “take home” pay is, and like lemmings “play a fool’s game” of write-offs. Many in “our” Congress and “their” power-brokers are wholly addicted to the game — “all is vanity…”
PROPOSAL (continued)
Comprehensive Reform… “revenue neutral” —
Going from an income tax system to the Fair Tax would immediately level the “playing field” (as it appears to be by Congress) by eliminating all of the power-brokering, the entitlements, the social-engineering, the constant studies to keep from going down the “slippery slope” of cause-and-effect — tampering with our economy and money system, and our tax base would become transparent, dynamic and have great ramifications:
1. The national debt would be systematically, autonomously paid down to minimums
2. The trade deficit(s) would be marginalized as the global “playing field” is leveled
3. The American people would be happier, more productive and less stressed…
4. The loss of revenue due to “underground economy” would be greatly reduced
5. The national character would get a great moral boost — in moral principals
6. The time wasted by government and representatives would be greatly reduced
7. The priorities such as energy, education, security, etc. would be enhanced…
Comprehensive Reform… “revenue continuity” —
The tax base would become the tax foundation or the mainspring of stable revenue, and the exemptions, the deductions, the (tax) credits and exclusions would become a thing of the past… a “thing of the past” where they rightfully belong.
These [income] tax engineered “loopholes” and the entitled [income tax] counter-culture, and mindset, of the income tax would be a “heap on the ashes of history” — in the Twentieth Century where IT/they should be… a historical footnote of what “not to do” if future generations are foolishly (read “stupidly”) so inclined.
PROPOSAL (continued)
Comprehensive Reform… “one, uniform tax rate” —
Equal Protection: The tax rate (not, plural “rates”) would be the same for all (equal justice for all) and the system would be personally and collectively “economically driven” which to any justice-seeking or fair-minded, reasonable person is the only thing that makes sense.
The distribution of the tax burden (“burden” is key) would cease to become a burden and more of a responsibility. Distribution (read “redistribution”) is what makes taxes become a burden, not proportionate/equitable, transparent taxes such as the consumption tax… Providing relief for those needy (when needed) is incumbent in the FairTax pre-bates.
Charitable giving is a personal thing. Having the government get in between one’s desire to demonstrate charity is to create a selfish person where a generous one existed before. The government needs to get out of the way and quit disbursing politically motivated or on a global/national scale — geopolitically motivated giving — charitable or otherwise.
Comprehensive Reform… “Home ownership – haw, haw!” —
Home ownership is a joke, both on a national, state and local basis. – When armed thugs can take away your “paid-for” home because you did not pay “property tax” — meaning “rent payment” for occupancy to the county government, then there is no such a thing as home ownership, only confiscatory taxation… representative government or not. Or when the IRS or state revenue officials can go to the county one resides and/or owns property (“real property”) and get permission to place a lien on said property pursuant to court ordered judgment (federal, state, local) and place it on the auction block, this is none other than confiscation, especially when the property can be auctioned off by the county for property tax, but the so-called owner can’t borrow money (due to income tax lien) to pay the confiscatory property tax. – I’ve personally experienced this and it is unjust.
PROPOSAL (continued)
Comprehensive Reform… “Transparent taxation” —
Going from an income tax system to the Fair Tax would immediately simplify collection and generate fairness in the process. Business would be treated like generators of our economic strength instead of being relegated (in great part) to being “tax collectors” of the Internal Revenue Service and state revenue systems. They would spend more time accounting for business growth and security rather than maintaining “trust accounts” and accounting of “with-held wages” for all the various vehicles of personal tax invasion.
To restate so there is no misunderstanding: THE FEDERAL INCOME TAX CODE SHOULD BE SCRAPED IN ITS ENTIRETY. -- THE INTERNAL REVENUE SERVICE SHOULD BE DONE AWAY WITH IN ITS ENTIRETY AS IT IS BASED ON THE INCOME TAX SYSTEM. – A few U.S. Treasury officials can collect sales tax moneys from the existing states’ sales tax entities. — Only a handful of states would need to start up a sales tax infrastructure.
Comprehensive Reform… “True privacy” —
My “under durita” (under duress) tax returns have been/are copyrighted with proper caveats and markings — the same used by an aerospace giant when disclosing private or proprietary data (technical, marketing, financial, personal, strategic, etc.) to the DOD – Department of Defense. Does the IRS honor this, not only “no” but “hell no” as they act as if they believe they are above the law. I am of the firm conviction that IRS officials and state revenue officials are not “grandfathered” with immunity from criminal & civil prosecution… As the IRS ignores the statute of limitations, then quid pro quo prevails.
PROPOSAL (continued)
Comprehensive Reform… “tax administration, etc.” —
My background in the aerospace and defense industry is as a recognized National Resource Specialist meaning that I have demonstrated national excellence and expertise in cost-savings, mostly driven by advanced or enhanced new technology systems, plain “common sense” practicality, and mission-driven weight savings — economy of structure, materials, etc. – “If it’s too heavy it won’t get off the ground, and if it’s too light then it will break.” – The best answer lies somewhere in between, an engineering judgment. Unquestionably, the present tax system (the income tax) is broken, let’s fix it. – NOW!
Call for passage of the Fair Tax Act – S/H.R.25
Comprehensive Tax Reform… a word to the wise! —
Any fool, a “rocket scientist” or even congress-members can see that immediately going to the consumption Fair Tax federal revenue system, and corresponding (by rote) states’ revenue systems will dramatically and greatly improve our overall economic health:
As compared to the present income tax system, the Fair Tax would pave the way for improved tax or revenue products, reduce cost of collection/administration, provide for inherent simplicity, provide for Constitutional (equal protection/access, etc.) fairness and equity, focus on “Constitutional Rights” in-lieu-of the restrictive “civil rights” which raises the bar on equity… and would inherently, greatly enhance compliance, reducing the same in enforcement resources… Above all the United States’ pre-eminent economic posture and national/socio-economic would secure global economic growth and competitiveness.
_____________________________________
PROPOSAL (concluded)
Comprehensive Tax Reform…
Respectfully Re-submitted to President George W. Bush
— Presidential Tax Reform Commission —
— Panel members…
By my hand this day — May 01, 2005 (Original from April 29, 2005 revised)
FRANK REGINALD WALL
ECO Star Energy Systems™ LLC
Energy Star ® Kennels™
Hackney Airpark
P.O. Box 1000
Athol, Idaho
U.S.A. 83801-1000
— Phone: 1 (208) 683-1000
— Email: frankwall@mindspring.com
Copyright © 2005, by Frank R. Wall
-- All Rights Reserved (UCC, et al.) –
President’s Advisory Panel on Federal Tax Reform -- according to /comments/index.shtml >> then transferred to … http://comments.taxreformpanel.gov/ >> then checking for posted testimony or new comments http://comments.taxreformpanel.gov/index.cfm?FuseAction=Home.ViewList >> “OPEN FOR COMMENT”
-30-
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"The current tax code is a daily mugging." - Ronald Reagan
File: FrankRWallFederalRevenuePositionStatement04292005FNCver2.doc
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| Posted: May 04, 2005 |
By: EE Services, Inc. - Eric E. Sharpe |
Subject: Submission
File: EricSharp.pdf
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| Posted: May 06, 2005 |
By: Howard Beale Memorial Society |
Subject: Rep. Fattah's Transform America Financial Transaction Tax
Comment: Pennsylvania Rep. Chakka Fattah's Transform America financial transaction tax is essentially the same idea advanced by University of Wisconsin's noted economist Edgar L. Feige and many other leading economists, and should be carefully considered by your Committee. Dr. Feige's proposal, called the Automatic Payment Transaction Tax (APTT), and Rep. Fattah's plan are both endorsed by the Howard Beale Memorial Society, which proposes that the new tax be introduced by expanding the present tax on stock market transactions imposed by the SEC because this would add significant present revenues and afford an opportunity to study the tax in action.
The Howard Beal Memorial Society endorses fundamental changes in the tax structure by incremental changes to avoid disruption of the revenue stream. We also propose that the proceeds of the new tax be lockboxed and dedicated to specific goals, such as the liquidation of the National Debt and Saving of Social Security. By reducing the costs of servicing such massive debt, revenues will be freed for more general application.
Marie Pangloss, Editor, Hew Horizons in Politics.
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| Posted: May 16, 2005 |
By: Duke Energy |
File: DukeEnergy.pdf
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| Posted: May 16, 2005 |
By: Cashflow Investments |
File: CashflowInvestments.pdf
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| Posted: May 16, 2005 |
By: Steptoe & Johnson LLP |
Subject: Corporate Capital Gains
File: CorporateCapitalGains.pdf
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| Posted: May 16, 2005 |
By: Eric Mittelstadt |
Subject: Tax Base Reforms for Manufacturers
File: TaxPanelLtr3.rtf
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| Posted: May 16, 2005 |
By: Capitol Tax Partners |
Subject: Proposal to Provide Fair Treatment of Incentive Stock Options under the Alternative Minimum Tax
File: Capitol.pdf
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