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Simplifying State Taxes

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Re your Aug. 14 editorial: There really is no need for California legislators to put California law into “close conformity” with federal law. What should be done is to do away with all “difference” (which is what many states now do) and just adjust the rates in order to achieve the same gross revenue that is now gleaned by four current unnecessary complexities.

It is simple, it would work and the state would save lots of money. And I believe the reason this “revolutionizing” idea is resisted by Sacramento is to preserve the bureaucracy that is known as the Franchise Tax Board.

There is no need to have, for example, a whole set of depreciation differences, nor different rules for the sale of a residence or other calculations. Just take the federal taxable income of all California filers (which can be determined very closely) and apply a rate structure that will bring into the state’s coffers the same revenue that the income taxes raise (or need to raise).

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SEYMOUR I. NEUMAN

Beverly Hills

* Instead of advocating a closer conformity between state and federal income tax laws (for individuals, not corporations), why don’t you urge that the state tax be a percentage of the federal 1040 (as some states with much simpler codes already do)?

A simple postcard would replace the 540 and a big chunk of state government would become redundant. The Legislature could determine the percentage, if a change would be warranted.

HENRY A. SARKISSIAN

Los Angeles

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