I have been involved in taxes since 1960 when I passed the CPA exam and thereafter went to work for the Internal Revenue Service as a field agent in Los Angeles. Kennedy was President; there was a real esprit de corps among the field agents. We had a lot of responsibility and all thought that we were really doing an important job.

Tax Reform is very dear to me. I have seen numerous changes, and changes, and changes in our tax system. There was a time when taxes were as high as a 90% rate; but there were always many "loopholes" and "shelters" for the high income taxpayers. Doors and Windows of tax planning opportunities are always opening and closing. An interesting site to visit is: Banneker Center. Collecting taxes is a very important and indispensable requirement for any government. Because Congress is a political body, there are always many influences on it to provide special tax benefits for certain groups. This causes our tax system to be used for other purposes then just raising revenue.

For example, if I work and earn say $50,000 in one year, why should I pay more taxes than someone who receives $50,000 per year in interest and dividend income? I will be paying 15.3% more taxes. Why should we have a work tax?

Why should a business that say grosses $100,000 and has a $50,000 loss pay no taxes, and even use this loss to offset other income, when a business that grosses $100,000 and has a profit of $50,000, payes taxes on the profit.

Why should we subsidize inept entrepreneurs?

Why should a self-employed person be able to deduct his business expenses before paying any FICA or Medicare taxes, when an employee with the same expenses, is required to itemize his deductions (and lose the standard deduction) and reduce these expenses by 2% of his adjusted gross income and be subject to the alternative minimum tax which effectively limits his ability to deduct these expenses.

The simple fact is: Our tax system is not fair!

A flat tax, a consumption tax, a sales tax all would benefit certain groups of people and would not be fair. The problem is not the graduated tax rates, it's how you arrive at taxable income.

What I propose is a very simple tax system. It would cause me and a lot of other people to have to change our jobs and professions. It would be very inexpensive to administer. It would be fair for everyone!

Should you be interested in the details of my proposal, please email me and request: TAX PROPOSAL.

Thanks for visiting here.

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e-mail: john@stollercpa.com
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