notes@iuvax.UUCP (04/12/84)
#R:uiucdcs:29200123:iuvax:2000026:000:2210
iuvax!scsg Apr 11 10:06:00 1984
The estimates I have seen are that actually applying a 50% tax rate
to incomes over $100,000 would raise approximately $17 billion in
new taxes. So just "soaking the rich" will not solve our current
deficit problems nor shift the tax burden from the middle class to
the rich. I do not advocate "soaking the rich" as a panacea to
our current tax inequities nor as a solution to our current deficit
problems. I do advocate a fair tax system which will be truly progressive
and insure that not only do the rich pay their fair share but that
the upper-middle class pay their fair share as well. In theory we have
a progressive income tax system - in practice however we have an unfair
lackadaisical, irrational tax system which is far from progressive because
of the way special interests have succeeded in getting one loophole after
another put into the tax system. Until we have reached the point that
bona fide millionaires pay no taxes - some other millionaires with less
skilled accountants may wind up actually paying the real tax rates on that
income( ie. 50% -though I doubt that ever happens!)
I also think that the same inequities prevail in our current Welfare
system. Some Welfare recipients by collecting overlapping benefits from
the hodge-podge of different programs available can windup with more
income (noncash included) than the working poor who are just under the
line of eligibility for every single Welfare program. I do not think
that is fair. If we are going to help people who are poor we should help
them equitably. Unfortunately Reagan's approach has not made the Welfare
system more equitable but made it even more unjust. The working poor
he says he wants to give incentives have been hurt the most of all by
his meatax approach to Welfare spending. I think the Welfare system needs
to be reformed--I don't think just taking a meatcleaver to current programs
does anything. Would you save costs on your heating costs of your house
by taking a wrecking ball to chop off one wing? Yet that has been the
effect of Reagan's across the board cuts in certain Welfare programs, whether
these cuts make any sense or not.
tim sevener
IU, Bloomington
pur-ee!iuvax!scsg