Wednesday, August 18, 1999 |
Give
tax cut to overburdened families Clinton as usual has turned the Social Security, Medicare and tax reduction issues into a political issue that is incapable of having a rational discussion with a reasonable solution. The liberal Democrats have made the statement that you can't take the money away from Washington and the 1 percent tax rate reduction benefits the rich. Our high school arithmetic, based on 1 percent reduction at the 15 percent rate, is in reality a 6.67 percent reduction and the 31 percent rate is in reality 3.2 percent and barely covers inflation. Obviously the 36 percent and 39.6 percent rates approach the inflation rate. It seems reasonable to me to go with the tax reduction rather than pay down the national debt with a surplus that is very questionable. What business pays down long-term debt with a surplus that does not or may not exist? This may be the only opportunity for a start on tax reduction for the average family whose total tax burden now approaches 50 percent in an economy where 40 percent pay no federal income tax. Social Security will only become a manageable fund when a separate, discrete, accurate account is set up to rigid bookkeeping standards and not hidden in the so-called IOU/voucher system. In actuality, the employee and employer pay 6.2 percent each for the Social Security tax on a maximum that is being constantly raised. Medicare tax rate is 1.45 percent with no wage limit obviously those on welfare pay nothing as there is no income. In this case Social Security benefits are properly paid as dependent on income wages and work force participation. There is no wonder Medicare won't be solvent in 2005. The Republicans are trying to sort these problems out for solution but Clinton's demagoguery prevents national discussion. James W. Ryan Peachtree City
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