Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83; site tty3b.UUCP Path: utzoo!watmath!clyde!burl!we13!tty3b!mjk From: mjk@tty3b.UUCP (Mike Kelly) Newsgroups: net.politics Subject: Re: VATs That!!! Message-ID: <308@tty3b.UUCP> Date: Mon, 20-Feb-84 18:12:39 EST Article-I.D.: tty3b.308 Posted: Mon Feb 20 18:12:39 1984 Date-Received: Tue, 21-Feb-84 08:01:07 EST References: <685@ihuxq.UUCP> Organization: Teletype Corp., Skokie, Ill Lines: 24 Right, sales taxes (and this includes a VAT, which is sort of a cumulative sales tax assessed at each stage of production) are very regressive and no self-respecting Democrat should be in favor of one. But Reagan has much better plans for the tax system. He wants a "flat tax", ending the sliding scales which have been instituted to try to add a small bit of fairness to the tax system. His flat tax would assess a flat percentage (the amount usually mentioned is around 20%) of income against all wage earners, regardless of income. Why is such an equitable-sounding idea so bad? The reason is simple on a brief second thought: 20% of an $8000 income just isn't the same as 20% of, say, a $130,000 income. There is clearly a hell of a lot of slack in the second; but try to get by on $8000 /year, let alone $8000-20%. Thus, the sliding rate tax system assess those who can afford to pay more at a higher rate, so that those who are barely scraping by pay at a lesser rate. Reagan's tax policies have gone a long way towards standing this on its head, actually effecting a net transfer of wealth from low-income tax payers to high- income tax payers. Apparently he's only begun. Mike Kelly ..!ihnp4!tty3b!mjk