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From: wetcw@pyuxa.UUCP (T C Wheeler)
Newsgroups: net.politics
Subject: Re: Reagan Hood - (nf)
Message-ID: <685@pyuxa.UUCP>
Date: Mon, 9-Apr-84 13:16:09 EST
Article-I.D.: pyuxa.685
Posted: Mon Apr  9 13:16:09 1984
Date-Received: Wed, 11-Apr-84 06:53:00 EST
References: <304@iuvax.UUCP>
Organization: Bell Communications Research, Piscataway N.J.
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[]
The Congressional Budget Office.  A fine, upstanding, impartial
source of information.  Oh balderdash!  When are some of the people
on this net going to take their blinders off.  Who do you think
appoints the people to the CBA?  If you want to check, you will find
that the all of the top personnel in that Office were former
Democratic Campaign workers, contributors, and lackeys.  The
credibility of that Office was debunked years ago.  Pay attention
now.  Read my lips.  READ SOMETHING BESIDES DEMOCRATIC CAMPAIGN
LITERATURE!!!  Even the mighty N. Y. Times does not beleive what
comes out of the CBA.  

I do not happen to subscribe to every Reagan policy either, but I
sure as hell don't think that any of the other three jabones have
anything to offer.  If you think taxing the rich is going to solve
all of the problems then you need a quick course in economics and
taxation.  Further, who do you classify as "the rich"?  A person
today making from 50 to 70K is still not considered rich by the
standards of just 10 years ago.  These people are still the
middle class.  Even if you raised the tax rate to 90% for all those
making over 75K a year, you would not raise enough through taxes
to keep Social Welfare spending going for more than a month.  The
greatest majority of taxpayers fall in the 25 to 75K range.  They
pay 90% of all taxes collected.  

Someone said that the government should take away the savings that
the rich have socked away.  Do that and the housing industry would
collapse, credit intrest would rise to over 40%, and the stock
market would collapse.  The money socked away in savings is the
basis for loans to do almost everything.  Just look back to the
recent recession.  Savings dropped off at nearly every level, housing
starts hit an alltime low, interest rates skyrocketed, and a
dozen other things happened due to the low savings fallout.

According to Tim's CBO article, the rich person saved over 8K as
a result of the tax cuts.  Well, isn't it interesting that soon
after the tax cuts went into effect, housing started to pick up.
I wonder why?  It's because the guys with the 8K to spare sunk
the money into savings, thus making more money available to
finance construction and mortgages.  With more money available,
the interest costs started down and more people could afford to
buy houses.  With more people buying houses, the construction
industry heated up, ect., etc..

If you want to believe that taxing the rich is the answer to all
of the economic problems, then I think you are living in a 
fantasy world.  If it weren't for some people being able to have extra
money to invest, there would be no use to float capitol improvement
bonds at the municipal level and your fire department might just
be operating with garden hoses.  If it weren't for those people
with extra cash, there would be no venture capitol available to
expand or start the companies who hire people.  

Sure, tax the hell out of the rich.  If you want to see bad times,
you just do that.  We will all be out for the dole.  There is a
cause and effect relationship to taxes.  And for those who do not
see the relationships, there are some hard times ahead.  I don't
like taxes any more than the next person, but to tax one class
of people out of existence is stupid.  Remember, there is a "rich"
class in the Soviet Union too.  The powers that be over there are
not so stupid to eliminate the rich and cut their own throats.

Finally, take what the CBO has to say with a grain of salt.

T. C. Wheeler