rrizzo@bbncca.ARPA (Ron Rizzo) (11/05/84)
THERE HE [REAGAN] GOES AGAIN! On Friday the Treasury Dept. CONFIRMED reports that it is seriously studying the elimination of some significant Income Tax deductions (for Real Estate Tax, State & Local Income Tax, & others) and the taxing of Unemployment Insurance and Workers Compensation. In Massachusetts (as in other states), property taxes, even a few years after a tax ceiling referendum (Proposition 2 1/2) passed, represent at least a few thousand dollars for every homeowner & a significant reduction of taxable income. As state income tax in- creases, that too is a significant source of reduction. All the prospective targets of Reaganite taxation penalize upper middle, middle, & low income people (the vast majority of Ameri- cans) & destroy significant forms of tax relief for Americans who simply can't afford the expensive & complicated tax avoidance schemes of the rich. The wealthy are untouched as long as invest- ment credits & deductions remain, & even if these were to go, tax shelters of one kind or another are always available for those with the bucks to set them up. Not only are Reaganites planning to tax deviously via deductions & social safety-net funds, but they further erode the already hard- pressed middle classes, whose increasingly thin margin of financial security in large measure lies precisely in such homely piecemeal economies as the motley income tax deductions. At least the Democrats are UP FRONT about how they'll raise federal revenues, & what taxation they'll implement. They also seek to tax FAIRLY, making the rich PAY THEIR SHARE. So you thought Reagan was a populist, eh? Cheers, Ron Rizzo
mwm@ea.UUCP (11/08/84)
/***** ea:net.politics / bbncca!rrizzo / 12:53 pm Nov 5, 1984 */ THERE HE [REAGAN] GOES AGAIN! On Friday the Treasury Dept. CONFIRMED reports that it is seriously studying the elimination of some significant Income Tax deductions (for Real Estate Tax, State & Local Income Tax, & others) and the taxing of Unemployment Insurance and Workers Compensation. All the prospective targets of Reaganite taxation penalize upper middle, middle, & low income people (the vast majority of Ameri- cans) & destroy significant forms of tax relief for Americans who simply can't afford the expensive Cheers, Ron Rizzo /* ---------- */ I'm confused. I'll concede that taxing unemployment and workers comp would hurt the lower classes, but it would seem that eliminating deductions for other taxes would most hurt those who pay more on those taxes, i.e., those who pay more taxes in general, the rich. If you accept that the rich don't pay income tax to start with (makes sense. They're rich, so why should they worry about making lots of money? If they don't make any money, they don't have any taxable income.) then naturally eliminating deductions doesn't hurt them. Doesn't help them, either. So, why do you claim that elimination of deductions (as opposed to taxing unemployment and workers comp) will hurt everybody but the rich? <mike
bwm@ccice2.UUCP (Brad Miller) (11/09/84)
> THERE HE [REAGAN] GOES AGAIN! > > On Friday the Treasury Dept. CONFIRMED reports that it is seriously > studying the elimination of some significant Income Tax deductions > (for Real Estate Tax, State & Local Income Tax, & others) and the > taxing of Unemployment Insurance and Workers Compensation. > > All the prospective targets of Reaganite taxation penalize upper > middle, middle, & low income people (the vast majority of Ameri- > cans) .... > > Not only are Reaganites planning to tax deviously via deductions ... > Ron Rizzo HUH? Reagan proposes to eliminate those taxes in favor of a flat tax. The total amount of taxes collected would stay the same. This is tax simplification, not raising taxes. Brad Miller -- ...[rochester, cbrma, rlgvax, ritcv]!ccice5!ccice2!bwm
orb@whuxl.UUCP (SEVENER) (11/13/84)
> HUH? Reagan proposes to eliminate those taxes in favor of a flat tax. The total > amount of taxes collected would stay the same. This is tax simplification, not > raising taxes. > Brad Miller Whether it raises taxes or not all depends on the particulars of any tax bill. It would be very possible to end up with the net result of raising taxes by eliminating tax deductions. For example, elimination of the mortgage deduction would hit many middle-income taxpayers very hard. For that reason that is one deduction unlikely to be eliminated. There are just too many voters adversely affected by it. The same could be said of other tax deductions which might be eliminated in any tax simplification scheme. I favor some sort of tax reform--but I don't favor a move towards an overall flat tax rate. I think there SHOULD be progressivity built into the tax system. tim sevener whuxl!orb