From: utzoo!decvax!harpo!floyd!cmcl2!philabs!sdcsvax!sdccsu3!sdcrdcf!pmontgom
Newsgroups: net.taxes
Title: Merge state and federal income tax returns
Article-I.D.: sdcrdcf.183
Posted: Tue Apr 19 07:27:38 1983
Received: Mon Apr 25 08:13:27 1983

Subject: Merge state and federal income tax returns

    Every year we report our income to the IRS and to our states.  I moved
in 1982, and filed three 1982 returns (with different instructions).  Let's
merge these into one return.  The IRS can forward the money to our states.

    Specifically, modify federal tax codes to allow any state (or
municipality) to specify that the income tax for its residents will be a
straight percentage of the federal income tax (line 38 of 1982 form 1040).
For part year residents, this would be multiplied by the fraction of the
year one lived there.  Suppose State A charges 15% and State B charges
30%.  If one lives six months in each and his line 38 is $10000, he enters

	State          Percent          State            Tax
		       residency        rate             due

	A               50%             15%             $ 750
	B               50%             30%             $1500
							-----
							$2250

and pays $2250 more to the IRS.  His employers would have sent all
withholdings to the IRS, so he has only one set of withholdings to sum.
He files only one estimated tax form, if any.  States can reduce their
staffs and their printing and postage costs.

    Progressive tax advocates should not object, since if the federal tax
is progressive then any fixed percentage of it is so.  This would be
voluntary on the states (a state not participating can set a rate of zero
and collect the old way), so states rights advocates should not object.

	      Peter Montgomery      ...sdcsvax!sdccsu3!sdcrdcf!pmontgom