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 15^th^.

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.