Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

What's Fair In Taxes?


Readers Report

WHAT'S FAIR IN TAXES?

Robert Kuttner's column "Dueling tax plans: One adds up, the other doesn't" (Economic Viewpoint, May 15) is formulated on two premises. The first is that lowering the tax rates will cause lower tax revenues. The second is that there should be tax equity; that is, those who earn more money should pay more in taxes.

In the first case, Kuttner was proved wrong during the Reagan era. When taxes were lowered, tax revenues went up. When Reagan compromised with Congress and taxes were raised, tax revenues went down again. Kuttner would probably argue that the deficit went up during Reagan's watch, but what he would probably fail to mention is that Congress went hog-wild with pork-barrel spending.

As for equity taxation, why don't we go all the way and make the wealthy pay higher prices, too? We could make them pay $1.50 for a can of Pepsi or $5.00 for a Big Mac. After all, it would only be equitable.

Dan Foley

Eden Prairie, Minn.

There is a real inequity in the idea of a flat tax on consumption. Most people who have retired do not save any more. Accordingly, a consumption tax would fall most heavily on older Americans. Such a tax is clearly unfair to retired persons and should either not be considered or should provide reduced or eliminated taxes for retired persons.

A.N. Tschaeche

Idaho Falls, Idaho


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus