My comments are attached per the instruction.

**Sat 3/12/2005 1:02 PM**

**Request for Comments #1**

**Requested by The President\'s Advisory Panel on**

**Federal Tax Reform on February 16, 2005**

**Response by**

**Bryan Delgado**

**4608 Birdie Court**

**Virginia Beach, VA 23462**

[**Bdelg8791@aol.com**](mailto:Bdelg8791@aol.com)

**An Individual**

**On March 12th, 2005**

Submitted by (an individual):

Bryan Delgado

4608 Birdie Court

Virginia Beach, VA 23462

\(W\) 462-7403 ext. 247

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

I currently have a three-drawer cabinet devoted to historical tax
filings for my wife and me. Every year we struggle to insure that every
detail is taken care of when filing for taxes. We purchase the latest
and greatest software on the market to insure little or no mistakes. The
time and money invested into this practice of preparing and filing could
be additional time and money spent on my family.

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

Where do I start? Since Social Security is on everyone's mind, lets
start with taxing the interest on a savings account or private
retirement accounts. People are trying to save for retirement, potential
emergencies, weddings, home ownership, etc. Why are we penalized for
saving money? We need to shift the tax system away from favoring
consumption, and towards a neutral tax system that encourages taxpayers
to work, create income, and save the fruits of their labor. High
marginal rates, multiple taxation of income, and the punitive treatment
of savings, coupled with the thousands of pages of pension regulations
that the government supports and nurtures, actually reduce our national
savings rate.

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

Lets look at the way the tax code encourages businesses or service
providers and individuals to cheat and break the law.

Typically, a service provider pays a high income tax rate in addition to
a 15.3 percent self-employment tax for Social Security/Medicare (if the
service provider is self-employed). Effective income tax rates are very
high for service providers since deductions and tax planning devices are
quite limited in the services business. Thus, a service provider in the
28 percent rate bracket will pay a combined 43.3 percent tax rate and
can almost double his after-tax income by failing to report income. How
much money does the IRS pay to its lawyers and court cost to enforce the
current tax code? The cost is staggering!!!

I read the paper and everyone knows what is going on in D.C. when it
comes to special interest groups. There are more than 40,000 lobbyists
(many of whom were Congressional staff or Members of Congress), and each
day they jockey to give their industries and their causes a special
advantage over other taxpayers. This is creating a class system and
divides the country. Poor verse rich is the way political staffs
leverage for votes every year. Lets put an end to this social divide and
name calling being with the tax code.

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

Congressman John Linder\'s legislation named the The Fairtax Act. Once
we put the wheel of change in motion with The Fairtax Act, it will
revitalize every aspect of our country's economy. It will, provide
greater benefits to families with children, lower the cost of health
care, make housing more affordable, and most of all, it will encourage
savings. The FairTax enables taxpayers to save tax free, as if there
were in effect a universal, unlimited IRA. You can pay a tax only if you
choose to spend beyond the necessities of life. If you choose to earn
more, save for the future, give away wealth to advance others, or
educate yourself, you don't pay tax. The FairTax places the choice to
pay taxes largely in the hands of the taxpayer.