Tax Code Overhaul

Re “Tax Reform Game Is On,” editorial, March 4: You are right; the game has begun, with the politicians playing to the public’s desire to pay less taxes, their dislike of the Internal Revenue Service and their anger over the complexities of existing income tax law. However, there are several key facts that everyone seem to be ignoring:

* Someone has to pay the cost of running the federal government. More than half the annual budget goes for retirement payments. Two other major factors are interest on the national debt and defense. Approximately 16% goes for all other costs.

* When I first started working as a tax accountant, the top federal income tax rate was 90% and there were no tax shelters. Today the top rate is 41%. Social Security is an entirely different issue.

* In 1986 Congress enacted the equivalent of a flat tax. There were two tax rates, 15% and 28%, and tax shelters were eliminated. Look what has happened to this tax law over the last 12 years. The corruption of the Tax Reform Act of 1986 was brought to you by the same people who now want to eliminate the existing tax law, without telling us what the new law is going to be. I think not!

* You state, “Under some versions of these proposals many poorer and lower-middle-class families would escape most taxes, while the affluent would find their taxes reduced.” Who is going to act as Santa Claus? I bet it’s going to be the middle class.

Somebody has to pay for the privilege of living in this great country. Yes, aspects of the tax laws should be simplified, but do not expect Congress to do it.

HAROLD L. KATZ CPA

Los Angeles

*

I am reminded of the cries from the auto industry when California passed legislation setting a deadline that required auto makers to lower emissions from automobiles. They argued that it was unrealistic, it could not be done in such a short time. Yet new cars with low emissions are out. If a deadline had not been set, would they have voluntarily changed the mechanics of cars to comply?

The tax code needs reforms. By setting a deadline, Congress will make sure there will be a new one to replace it. Maybe we should tie their pay with the completion of it.

A.A. SLATER

Huntington Beach