‘95 Pay Raises for U.S. Workers

American workers received only 2.9% pay raises in 1995, while the Dow just hit a seventh consecutive record of 5,601 (Feb. 14). Yet some Republican presidential candidates claim there still isn’t enough incentive for investors, and advocate a flat tax that exempts all interest and capital gains from income taxes. Am I missing something here?

Or is it just the wrong version of a flat tax? How about the “25/25 Fair Flat Tax,” to benefit working people more than Steve Forbes’ proposal: No income tax on the first $25,000 per adult ($50,000 per couple; this also makes the loss of the mortgage deduction irrelevant for all but mansion-dwellers), and 25% on all types of income above that. We would have the simplicity of a flat tax, but with those who can afford to paying appropriately and those left with the 2.9% raises finally having some money to spend toward reinvigorating the economy.

DARRELL R. CLARKE

Santa Monica

* During the recent holidays, retail sales expectations were dashed when consumers failed to spend the amount of money retailers had hoped for. Might that have been due to the connection between what a person earns and what he spends?

I work for an employer that likes to say its employees are its greatest asset. However, while the company has the financial means to expand into several markets, it has not found the funds to convert that success into meaningful raises. Last year, my 4% raise translated into 60 cents per hour. What much more am I able to do with that?

Employers who do not share their wealth hinder their employees’ ability to spend personal income with fluidity, and consequently hurt other businesses. Sooner or later, their economic myopia will boomerang on them.

MAYRA L. CARRASCO

Los Angeles