Suggestion to Buy T-Bills With Capital Gains Forwarded to Treasury

[1] I am writing on behalf of the above-referenced constituent, who has contacted my office for some assistance. The concern or request is described on the attached document, and I would appreciate your office's assistance with this matter.

[2] Would you, accordingly, please reply to me regarding the issues which this constituent has brought to my attention?

[3] Please respond in writing and BECAUSE OF THE URGENCY OF THIS CASE, A PHONE CALL WOULD BE GREATLY APPRECIATED. YOU CAN CONTACT NANCY DESERPA AT 831-424-2229. A FAX'd response can only be accepted if it is both typewritten AND in a form which can be sent directly to the constituent. I would prefer that responses be made on agency letterhead signed by the appropriate IRS official. Your response can be sent to my office at 100 W. Alisal Street, Salinas, CA 93901, to the attention of Nancy DeSerpa.

[4] Thank you for your assistance.

Sincerely,

[5] Thank you for contacting my office. As you know, I am always eager to assist you in any way possible.

[6] However, I see that the issues you have outlined are a federal matter, out of my jurisdiction as your State Legislator. For that reason, by copy of this letter, I am referring you to Congressman Sam Farr, U.S. Representative for the 17th Congressional District. His telephone number in Santa Cruz is 831-429-1976. If you care to write him directly, the mailing address is 701 Ocean Street, Room 318, Santa Cruz, CA 95060.

[7] Again, thank you for contacting me. If there is anything I can do for you in the future, please let me know.

With best regards,

[8] Please consider the following Capital Gains Tax relief proposal --

[9] Option: Allow U.S. Citizens the option of buying Treasury Bills with their Capital Gain Friends, as an alternative to paying the 20% Capital Gains tax. -- A minimum of 5 years, with early withdrawal penalties.

[10] Their proposal would (A) bring friends to the government by T-Bill investment, (B) encourage taxpayer to save and (C) allow Capital Gains tax relief.

[11] I am aware of the 1031 tax exchange code, and the 2-year homewoners exchange codes -- However, some of us have retained family investment property for a longtime -- and we would appreciate any form of tax relief.

[12] Thanking you in advance --

Respectfully

Dear Congressman Farr:

[13] This letter is in response to your inquiry dated December 16, 1999, on behalf of your constituent, Mr. George Kamian. Mr. Kamian sent you a capital gains tax relief proposal.

[14] He suggests that taxpayers be allowed the option of buying Treasury Bills with their Capital Gains funds as an alternative to paying the 20% capital gains tax. It appears that legislation amending the tax code would be required to address your constituent's concerns. As the Department of the Treasury's Office of Tax Policy is responsible for analyzing and developing changes to the tax code on behalf of the Administration, I am forwarding your correspondence to that Office for consideration.

[15] Please inform your constituent that although his suggestion is appreciated and will be considered in developing and analyzing the Administration's tax policies, he may not receive a written response, or even an acknowledgment, from the Office of Tax Policy due to their limited resources and heavy workload. Please also note that most Office of Tax Policy correspondence is released on a weekly basis under provisions of the Freedom of Information Act.

[16] If you or your constituent have any questions about this referral, please have a member of your staff contact Bonnie Alexander at (202) 622-3730.

Sincerely,