In response to
Slow Economic Recovery Ahead

John Stanfield in Peachtree City, GA
Friday, June 8, 2012 at 11:53 AM

Under IRS rules no good deed goes unpunished. Incredibly, when someone gives away money he not only cannot deduct it from taxable income, but may have to file a Gift Tax Return and possibly pay an additional tax up to 45%!

This insanity should be corrected by:

(1) Allowing the deduction from taxable income any gift to any entity with a Social Security number or a tax ID.

(2) Treating such gifts as income to the recipient for tax purposes and to determine eligibility for entitlements.

This move toward fairness would appeal to the rich as a voluntary method of redistributing wealth, and money would flow out of bank vaults into the stream of commerce. Because the general economy would experience an unprecedented boom, lower tax rates would be offset by an increased number of taxpayers.

Almost immediately, income-based entitlements and administrative costs would be cut drastically as well.