FRANK R. DENMAN, M.D., F.A.C.S.

DIPLOMATE AMERICAN BOARD OF SURGERY

104 SUNTORY WAY

LUFKIN, TEXAS 75901

PHONE: (409) 634-2873	FAX: (409) 634-2506

MOBILE: (409) 635-1968

April 12, 1995

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Dear 4,

Some ideas about the deficit and the national debt. First, abolish the income tax in its present form including the capital gains tax. Create a flat rate income tax starting at 5% of the lowest gross individual or corporate income above the national poverty level and increasing to a maximum of 15% on the highest incomes including all sources. No deductions! No complicated forms to complete. Second, create a 1-2% national sales tax on everything except staple foods and medicines. Make it 5% on alcohol and tobacco. When you consider that the more affluent will purchase more things and more expensive things, they would be paying more than anyone else. Third, CUT SPENDING! The difficult thing to decide is what programs to cut and how much and for how long. So the best solution is is to cut everything equally across the board except social security benefits. Corporate subsidies would not be exempt. Our current level of spending occurred over four decades, we should not eliminate it immediately. Simply make an annual across the board cut of 5% of the previous year's spending on each and every program except the one mentioned above. Continue this annually until total revenues exceed total expenses. Obviously, this plan is fair to everyone, but the suggested numbers might need adjusting up or down. The resulting surplus would pay the debt. Some programs could be phased out completely; others cut only once or twice. No constitutional amendment or term limits for anybody (including the President) are required. The electorate will determine term limits. Think of it!! One simple bill - THE BIPARTISAN AMERICAN DEBT REDUCTION BILL - sponsored by every member of Congress and endorsed by the President. This would eliminate the question of "favoring the rich and penalizing the poor". Everyone, individuals and corporate America, would pay proportionately. Remember--all us taxpayers, including yourselves, are "working men/women"--we just work at different things. A reply would be appreciated.

Cordially,

Frank R. Denman, M.D.