Tax Code Proposals

* Regarding the continuing discussions about possible changes in the tax code:

Rep. Bill Archer (R-Tex.), chairman of the House Ways and Means Committee, says about taxes, “The money doesn’t belong to the government. It belongs to the American people who earn it.”

Archer is obviously using “earn” as it is commonly defined to mean “deserve.” It is not clear how management decides who “deserves” what. Somehow or other, management itself gets salaries, while the rest get only enough to keep them working.

Taxation is appropriate, I think, to get back at least some of the money that management has grossly overpaid itself. This is the fair way to raise funds for necessary government services.

QUENTIN C. STODOLA

Redondo Beach

* Re “Overhaul the Tax System to Create Wealth,” Commentary, April 16:

A flat tax sounds so wonderful in concept, but I think that the American public ought to be made aware of just who will become wealthy with a flat tax and who is going to pay for it. As usual with any Republican plan, the well-off will get wealthier while the middle class will end up paying more.

My wife and I were in Washington recently and attended a Senate Finance Committee hearing on the flat tax. The Republican plan is supposed to be revenue neutral. Under their plan, the very poor would not pay anything into the system, while the rich would have their highest tax rate reduced from 39.6% to 17% (or 19%). Thus, in a revenue neutral plan, if the rich and the poor are to pay less, someone else will have to pay more . . . the middle class as usual.

In addition, the Republican plan would include in taxable income employees’ health benefits paid by an employer as well as their pension benefits, and would exclude such important middle-class tax breaks as the home mortgage deduction, state income taxes and charitable contributions.

In short, whenever a Democrat takes office, the Republicans are fond of telling the public “watch their wallets.” In contrast, when Republicans are in power, I think it is fair to say that the people who need to watch their wallets are the middle class, while the rich dance in the aisles!

DAREN C. PERISTEIN

Los Angeles

* Let’s stop all the rhetoric; the idea of a flat tax is primarily because of its anticipated simplicity, but it will never become reality. A flat tax will never be realized because of the inevitability of the unemployment of thousands of accountants, financial planners, lawyers, tax advisers, etc.

ANDREW E. WOODWARD

Los Angeles