June 09, 2007
Saturday

Since 1913 a progressive federal income tax system has been in place, with tax rates increasing as income rises. The top marginal tax rates resulting from the costs incurred by World War I were at, or about, 70%. From 1925-1931, the years leading up to and including part of the Great Depression, the top rate was 25%. Where was our booming economy when top rates were that low? That ought to tell us something!

During World War II, the very highest tax rates for the wealthiest of Americans soared, reaching 94% in 1944 and 1945. Similarly, the top tax rates during and following the Vietnam war were at 91% over a period of many years.

As a result of President George W. Bush's tax cuts, the current top tax rate is among the lowest ever at 35% -- and few of the wealthiest pay even that percentage. Taxes on unearned income (investments, stocks, bonds, etc.) also have been slashed to historically low levels.

With record-setting budget deficits, international terrorism, natural disasters, the wars in Iraq and Afghanistan and 'nation building', Bush's tax cuts have been a disaster. Bush is digging us a deficit hole from which we may be unable to extricate ourselves. Who does he think will pay the bills? Apparently it doesn't matter. His solution to almost everything is more tax cuts -- especially for those that need them the least.

It would have been far better for the Bush Administration and Congress to increase tax revenue by getting serious about attacking corporate fraud, tax loopholes, tax evasion, tax shelters, wasteful spending and offshore corporate tax havens, than to slash taxes for the wealthiest of Americans.

Our soldiers in Iraq should not be the only ones to make sacrifices in time of war.

Paul G. Jaehnert
Vadnais Hts., MN

Received June 07, 2007 - Published June 09, 2007

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