Matthew A. DeMotto

43 Cresview Terrace

Bridgeport, WV 26330

To the President's panel on tax reform

Dear committee,

Thank you for the opportunity to express my opinion regarding the
following:

1.  Headaches, unnecessary complexity, and burdens that taxpayers - both
    individuals and businesses - face because of the existing system.\
     

2.  Aspects of the tax system that are unfair.\
     

3.  Specific examples of how the tax code distorts important business\
    or personal decisions.\
     

4.  Goals that the Panel should try to achieve as it evaluates the
    existing tax system and recommends options for reform.

I have come to the conclusion that a system that taxes ones income will
always be burdonsome. Punishing success to any degree is a burden. The
burden on the individual and the drag on economic growth will persist if
at the end of the day, we continue to tax productivity.

The application of an income tax requires all of us to give up the right
to the fruits of our labor. This is not a characteristic of a free
society. It is contrary to principles of freedom. One's labor is ones
property and should not be targeted for confiscation. A government
concerned with growing personal freedom and preserving such would not
condone a tax on income. Does involuntary servitude mean anything? Is my
tax on income something that I'm required by law to hand over or am I
doing it voluntarily? Since law prohibits involuntary servitude, our
income tax is either in violation of the law or it's voluntary. Which
one is it?

Furthermore, the government can't tax ones income without violating
constitutionally protected rights regarding enforcement of such a
system. The very nature of the system places the IRS in a position where
they have to infringe on the rights of the people in order to carry out
their duty. Privacy must be violated for the IRS to obtain information.
Inevitably the agency grows abusive because it can get away with it.
Recently, a federal judge ruled that the people could ignore an IRS
summons that is absent a federal Judges signature. This means that the
IRS has been routinely issuing such and taking property without due
process. Will they give back such property? I doubt it. It is the mighty
power of the Federal government against the minimal resources of
individual citizens. The people have little hope in prevailing, even if
the law is on their side.

The system has brought us IRS confiscation of property without due
process. We've all seen accounts of IRS abuses. It forces individuals to
give up their property before any ruling in court. It gives a tax court
authority it should not have and the truth is if the people's rights are
protected, then the system can't survive. In other words, it can only
operate in a tyrannical manner.

Suppose I own a small business and chose not to reveal any information
in an audit. I have that right. Yet if I do so, I risk the harassment
that will follow or an assessment of taxes owed without any proof of
income. The government can't force me to reveal anything that can be
used against me in a criminal case. Sure, my papers and I can be
summoned to court, but I don't have to say or show anything. I have the
right to be secure in my personal papers. You all know this, but to
exercise ones rights against the IRS is not without risk and not without
cost. I would likely surrender my rights in the face of such potential
abuse. I'm not alone in this matter, as it is fear that motivates the
people to surrender their papers and go along with the demands of the
agency. Is this the system we should have in a free society? You know it
is not. However, if it is income you tax, then the truths I've touched
on above will continue to burden the people.

I have never personally had any problems with the IRS. I'm a teacher and
my tax situation personally isn't that complicated. I'm trying to look
at the big picture, that which dwells beyond my personal situation.
Looking at the big picture has forced me to conclude that an income tax
system is not compatible with a free society. It should be repealed in
full. Taxing income should be sent to the trash heap of Government
mistakes. The new system should be one that encourages growth, savings
and above all else, it should be one that promotes freedom. It should
reward success, not punish it. If I punish a student, it's because I
want to eliminate his poor behavior. Punishing anything always results
in less of that which you are punishing. An income tax punishes our
productive efforts. Why would we want less productivity?

I would prefer our government go back to constitutional spending, but
that genie has left the bottle. In the face of that reality, I suppose
my support would be for a national retail sales tax. As I understand it,
such a bill exists that would protect the poor via a refund mechanism.
This system would effectively create the largest and most powerful tax
haven in the world. Companies throughout the world would want to locate
in the USA. Investment would pour in because investment growth wouldn't
be taxed. The benefits of such a tax system seem so obvious to me.
Certainly powerful interests (The income tax industry and the super
wealthy who largely avoid the income tax with their foundations and
foreign trusts) would oppose such a plan, but why should 99% of us be
slaves to their demands?

I don't have much hope that you will recommend the elimination of the
income tax and the implementation of the "fairtax" (national retail
sales tax). That would require a great deal of courage and you would be
battling the wishes of powerful entities. However, if you truly want to
do something positive for your country, its people and our children,
then eliminating the income tax is the only way your committee can
succeed. You could make a recommendation that would make the income tax
less of a burden, but over time those modifications will be eliminated.
Future politicians will modify as they always have and the system will
grow more burdensome. That's the way it always is with government. Thus,
if you recommend a change that still includes the income tax, then you
haven't really recommended a change of anything, at least not anything
permanent.

I pray for the sincerity of your effort.

Good Luck and thanks,

Matthew A. DeMotto in Bridgeport West Virginia