Tax Reform Commentary and Proposal From individual tax payer: Timothy A Johnson

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Tax Reform Commentary and Proposal
From individual tax payer:
Timothy A Johnson
9749 E Paseo San Ardo
Tucson, AZ 85747-5039
e-mail: tajng@cox.net
Dear Committee Members:
As an individual taxpayer, please allow me to make a few brief observations.
1. The Federal government wastes far too much of the people’s money. In this case,
people who work for the government bureaucracies, while they perform tasks that
may be currently necessary, are overhead. That is, they are not contributing to the
bottom line. They don’t generate revenue. Instead, they take away from it. We
need to reduce the need for such jobs, so we can employ these people in positions
that productively improve the national economy.
2. The current tax code costs business far too much, and is extremely unfair to
ordinary individuals as well. The top 50% of wage earners pay 96% of all income
taxes. About half the people in America pay no income tax.
3. A large underground economy exists due to illegal activity, including tax fraud
that is mostly uncollectable.
I believe we should scrap the current income tax code, and replace it with a tax on
consumption. I believe everyone should pay some tax, but I would agree that the poorest
among us should pay the least. Everyone should contribute something. I propose the vast
majority, perhaps 90%, would be taxed at the same rate, and would make up for the lesser
amount that the poorest would contribute. This should be kept as simple as possible.
A tax on consumption will

Greatly reduce the expensive bureaucracies currently in place to collect income
tax.

Virtually eliminate the cost of preparing tax statements.

Recover the lost revenue due to illegal activity.
I believe Americans would be absolutely overjoyed by not having to prepare tax
statements. So, I think a consumption tax is an easy sell to the taxpayers. It is fair across
the board. The more you spend, the more you pay. The poorest few percent could have
their share subsidized by the majority, but the crossover point should be very small. 10%
of the population at most should be allowed any refund due to poverty.
Thank you for the opportunity to provide my opinion.
Sincerely,
Timothy A Johnson
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