78-05-A2

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Tax Time

Transcript These lines were addressed to the Democratic platform committee in 1976;-- QUOTE-- "When a business executive can charge off a $50 lunch and a truck driver cannot deduct a $1.50 sandwich we need basic tax reform."--UNQUOTE-- (We really need to do something about the price of sandwiches.) Then came this line;--QUOTE-- "Carefully contrived loopholes have created a regressive system which lets the total tax burden shift more and more toward the average earner." --UNQUOTE-- And, this line has a familiar ring; --QUOTE-- "The national tax system is a disgrace." --UNQUOTE-- Those were the words of Candidate Carter speaking to his parties platform committee and calling for --QUOTE-- "a more progressive system of taxation."--UNQUOTE The ideas he expressed are typical of the widespread mythology abroad in the land today. It sustains our policy of robbing Peter to pay Paul. It's time we woke up to the fact we're all named Peter. The businessman can't deduct the cost of lunch unless it is a legitimate business lunch. Sure, there's room for fudging, but he'd better be pretty careful. As for those "carefully contrived loopholes", 10% of the income taxpayers pay 50% of the total tax and they only take 5% of the deductions allowed by the regulations (or loopholes if you prefer.) Yes the tax system is a disgrace but not for the reasons usually given and no we don't need a "more progressive system of taxation". Lets take a look at the two ends of the scale. The lowest earning one-fourth of the population pay less than one-tenth of the total income tax. The top one-fourth pay 70 per cent and you are part of that one-fourth if you earn $17,000 a year. At $10,000 of earnings you move into the top half of earners who pay 94 per cent of the tax. Breaking it down a little further, those between $10,000 a year and $30,000 which must describe the middle class, pay 54 percent of the tax but are 45 percent of all taxpayers. If you can hold still for more figures they make it plain that our tax system is as progressive as it can get without becoming completely confiscatory. At $30,000 you enter the top 5 per cent of earners who pay 40 per cent of the tax. Less than one-and-one-half per cent earn $50,000 or more but they pay 23 per cent of the total tax. If we take $100,000 a year as the beginning of the fat cat class we are talking about three-tenths of one per cent of taxpayers and they pay ten per cent of the total tax. Traditionally in Western religions it is accepted that the Lords share of our earnings is a tenth and we have been told that if the Lord prospers us 10 times as much we will give ten times as much. But it all comes out a little different when we "render unto Caesar". This is Ronald Reagan. Thanks for listening.		Details Batch Number 78-05-A2 Production Date 04/03/1978 Book/Page Online PDF Audio Youtube? No
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