Abolish the Savings Bond Tax. The interest earned on a loan to the US Government should not be Taxed by the US Govt.

Interest on savings bonds is subject to taxes imposed under the Internal Revenue Code of 1986. Owners of savings bonds are limited to the amount they can purchase in a year. Taking money earned from money loaned to the Government is an unfair practice. Savings bonds would be more appealing to investors if this practice was abolished. It would also offer relief to persons (namely the elderly who have had these bonds for a long time and may not have income sources anymore) who, may otherwise be bumped into a higher tax bracket because of the money they loaned to the government when the bond matures. If they fail to report this income, even if they don't cash in, they may penalized by the IRS. For these reasons we ask for that interest earned on US savings bonds be tax exempt.