Cutting Taxes, Increasing Debt
The tax reform bill being considered is an outrage against decency and fairness. Consider this:
1--Taxpayers who are primarily renters and make $10,000 to $30,000 a year (the majority in this country), subsidize those who make much more money and get deductions for even two houses.
2--Individual Retirement Account deductions are overwhelmingly taken by those who make more than $30,000 and who already will get pensions and Social Security. So again, the poor subsidize the rich.
3--A millionaire will pay at the same rate as an individual at $20,000. Absurd! Look at the money each of them has left after fixed expenses in their life.
All this can be easily fixed if Congress and the President will allow a renter’s credit , plus no IRA deductions for those with pensions, and tax rates of 15%, 25%, and 33%. All other taxes (sales, Social Security, excise, etc.) are “flat” taxes, and fall more heavily on lower income groups--thus, the income tax must be progressive to have overall fairness.
MICHAEL KLEIN
Santa Barbara
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