Response to the Request for Comments #1

Denton Conrad

Individual

February 25, 2005

6824 Cool Pond Road

Raleigh, NC 27613

919-848-1323

Subject : Response to the Request for Comments #1 from The President's Advisory Panel on Federal Tax Reform (Posted February 16, 2005) Denton Conrad

Topic 1: Headaches, unnecessary complexity, and burdens that taxpayers

(Both individuals and businesses) face because of the existing system -

The topic description already contains my sentiments, is quite self explanatory, and

is amazingly self deprecating.

Tax collection by the Federal Government should be simple, fast, fair, and efficient, without respect to special interests of any group or any individual,… period!

The amount of time I have to spend, even on my fairly simple return, is ridiculous.

The complexity and convoluted nature of the forms MAKES it unnecessarily time

consuming. There is too much micromanagement on the part of the IRS. It is obvious to

me that the tax code was written by accountants for accountants. Somehow Congress has been duped into believing that this complexity is the best approach. I am convinced

it is not. A federal sales tax, a flat tax, or a highly simplified graduated tax are worthy of

consideration. My personal leanings are towards a federal retail sales tax.

Topic 2: Aspects of the tax system that are unfair –

All Americans are partakers of the benefits of this democratic republic called the United

States of America. All Americans should pay some tax (no matter how small).

It is not fair that any taxpayer should get money back from the tax system, when they

paid no tax into the system. This practice does not instill a sense of personal ownership of this government by those persons. Denton Conrad

It is not fair that the Federal Government has given itself the right to take money out of a person’s personal paycheck, before that person takes control of the money, … money they earned.

It is not fair that a government institution like the IRS should generate tax documents that

require specialized expertise just to interpret the documents, require wastefully huge

amounts of time for accurate compliance, and, may require the expenditure of money on

the part of the filer, just to have it done correctly because it is so complicated.

It is not fair that the Federal Government has allowed itself to be an accomplice of social

engineering in the area of tax exaction, when the primary responsibility should be to

collect taxes without bias and with fairness (meaning everyone pays some taxes, no

matter how small). The Federal Government gave itself the right to collect taxes on

income by way of Article XVI of the US Constitution in 1913. The Federal Government has assumed the rights of social engineering by way of inclusions or exclusions

integrated into the tax code. These aspects have illegitimately (for they have nothing to

do with fast, fair and efficient tax collection) entered into and now permeate the income

tax code, by way of consideration to special interests.

It is not fair that the current tax system has helped to spawn an entire industry whose income is based on the inability of the common citizen to comply with the current code by the completion and filing of income tax forms. The use of these services

is arguably optional. The government should not be causing unnecessary “overhead” industries to come into existence.

It is unfair that the current tax system has no way to force the underground economy to Denton Conrad pay its fair share. A federal retail sales tax would resolve this issue.

It is unfair the current tax system taxes corporations, when, it is obvious that corporations only compensate by passing the costs on, resulting in increased service or product fees.

It is unfair that the current tax system taxes personal income, then, taxes the income again by imposing consumption taxes on gasoline. This is double taxation.

Topic 3: Specific examples of how the tax code distorts important business or

personal decisions –

My only personal decision that has been affected by the tax code is difficulty in deciding for whom to vote. Up to this point, there was an apparently decided lack of interest in overhauling the current tax system by members of either party, and hence an issue important to me was heretofore never addressed during campaigns.

Topic 4: Goals that the Panel should try to achieve as it evaluates the existing tax

system and recommends options for reform.

Stream line the tax collection process. Tax collection by the Federal Government should be simple, fast, fair, and efficient, without respect to special interests of any group or any individual.

Endorse a system that eliminates as much paperwork as possible. Pushing paper is terribly expensive.

Embrace a solution that requires minimal personnel (massive reduction of the IRS Denton Conrad bureaucracy).

Deploy a system that causes immediate and continuous cash flow through out the year for the Federal Government, not just by April 15th.

Put a system in place that makes industries more competitive, by cutting tax compliance costs.

Allow wage earners to take total possession of the money they earn immediately, for the money belongs to them. The government assumed the right to have access to the wage earners money before the wage earner’s right to have it, and that is just simply wrong!

Stop trying to accomplish social engineering in the tax system, it has no place there, numerous other government programs exist for that purpose (albeit not Constitutional).

Congress should not be burdened by having to consider special interest topics in the

tax code. Remove that burden from them and any temptations that might accompany

those considerations. There are plenty of other issues with which to deal.

Scrap a very archaic and complicated tax code, it really isn’t necessary.