Copy --

Karen Kline

Santa Fe, NM 87505
                                                                                     2/2/96
Donald Skadden
Executive Director
American Tax Policy Institute
P.O. Box 6198
Washington, D.C. 20044-6198


Dear Mr. Skadden,

I just finished writing to Mr. Castillo, a copy of which letter is
enclosed.

When I finished the letter, I was freezing cold. I believe this was a
result of thinking that if I told him how really hopeless I think this
problem is, for the reasons that I think it's hopeless, that he would
see what I meant and not be able to do anything.

I thought that if he wasn't aware of some aspects of this problem,
he might go ahead, believing there was hope, and do something that
changed what I see as the inevitable outcome. Thus, the following
paragraphs from that letter no longer appear in it, having been
transferred here. I cannot simply delete them, since they are
ultimately extremely important and are the basis of my belief that
the only way this problem can be avoided in the future is to institute
a National Sales Tax with quarterly rebates to low income families.

Well, it was a third of that letter, from the bottom of page two
through the end, and the idea already permeated the first two thirds
of the letter. So I couldn't really take it out, because it's what the
problem is.

I suppose the thing to do is to send him a copy of this letter, so that
he realizes that I thought he might be able to do something.

And then there's the additional problem that Mr. Andreas and Mr.
Lintner may be friends of yours. I doubt, for some reason that you
know Mr. Gallo, perhaps because I don't think of you living in
California. If they are friends of yours, you may favor tax programs
that give more breathing room to those that already have the most.

Last November and early December I sent out lots of copies of the
cover and/or the first page of
Forbes' story The New Refugees.
Lots of people responded that it had nothing to do with people in
lower income levels. I however felt it had everything to do with me,
since having lived out of the country that was not an option I
wanted to take. Like Socrates, I feel, and have felt for a long time,
that death is preferable to exile. Not because I would miss this
government, but because I already know how much I missed
talking to Americans. After nine years in London, I was still an
American and different. Here, even two men in dark suits, visiting
me from the Treasury Department, have more in common with me
than most if not all English people have. That commonality is
deeply important to me, as I believe it is important to many people.

Perhaps if Steve Forbes is elected, the tax refugees will be able to
return, with presidential amnesty. My feeling is that Forbes went
the Flat Tax route because the idea of a National Sales Tax has
become synonymous with "regressive." Perhaps he thought, or was
advised, that no one would hear what he was proposing, if he was
proposing a National Sales Tax, because everyone would be so
eager to correct him.

From talking to Frank Davis at Citizens for an Alternative Tax
System, which organization I disagree with on the issue of refunds
to low income families -- I believe these are essential, CATS
appears to believe they are not acceptable -- I understand that the
thought on the time line for all of this is: presidential elections in
1996, tax legislation in 1997.

I will say that while I do not intend to vote for Mr. Forbes, I am
very grateful for the message he is disseminating, I think he is doing
us all a great service.

Rather than thanking you, Mr. Skadden, I would like to say what
an impact you've had on my thinking. I keep writing letters and
sending them out, knowing that mail order catalog people believe a
5% return to be excellent, knowing that when I did direct mailings
as a Realtor and got a 10% return it gave me a nice living, even if
that income was not "regular" on a weekly or monthly basis, but in
this, with no replies most of the time, and the time of the
foreclosure drawing nearer, most days it's hard for me to reply to
people who tell me that none of my letters will make any difference.

The thing is, if I can't get any of my legislators to pay attention to
this problem, and if none of my letters make any difference, then
people are right to take extreme actions as per the beginning of the
Universal Declaration of Human Rights. I'll enclose a copy of my
letter to Don Boroughs. And, I don't want to believe that things are
really that bad. I think it is better for me, and for my country
people, for me to kill myself than for me to believe things are that
bad and join with people who are arming themselves and planting
bombs.

Your response to my letter encourages me. Unless of course, you
only wanted to know if I am armed, as per the indication of Mr.
Roybal's question.

Sincerely,    
    
Karen Kline
                               Karen Kline
Enclosures:
1.         
Letter to Ralph Castillo, Inspector, Treasury, IRS, dated
2/2/96
2.         
Letter to Senator Robert Dole, dated 1/25/96
3.         Letter to GE Capital, dated 1/12/96
4.         Letter to Don Boroughs, U.S. News & World Report,dated
1/4/96
5.         
Letter to Richard Leaf, Regional Inspector General for
Investigations, dated 12/8/95
6.         Letter to Valeria Lau, Inspector General, Department of the
Treasury, dated 12/8/95
7.         Letter to Peter Sepp, National Taxpayers Union, dated
12/8/95
8.         
Letter to Valerie Lau, Inspector General, Department of the
Treasury, dated 10/14/95
9.         Letter to Valerie Lau, Inspector General, Department of the
Treasury, dated 10/13/95
10.       Letter from Bill Richardson, House of Representatives,
dated 11/16/94
11.       Letter to people I had been telling about my IRS problem,
dated 11/10/94
12.       Letter to Special Tax Problems, IRS, Dallas, Texas, dated
10/20/94
13.       Letter to Taxpayer Ombudsman, Austin, Texas, dated
10/20/94
14.       Letter from Jeanne Kearney, IRS, dated 9/30/94, with
margin notes dated 10/25/94

I am not including my 911 form, but I sent it with items 12 and 13
above.

My computer shows that I actually wrote item 12 above on
10/26/94, and this would seem to be true from the content of this
letter.



Pages 19-21 (Preceding),      Page 25 (Following)
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