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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
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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
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