A rising tide raises all boats
To the editor:
Our federal tax system needs major reform. It is too complex, unfair and burdensome, and retards US economic growth. Our top corporate rate of 39 percent is highest among all developed nations. Several studies show that over 70 percent of the burden of this excessive rate falls on the shoulders of American workers in the form of lower wages.
Our individual tax system burden is very progressive. The top 1 percent earners receive 20.6 percent of total income, but pay 39.5 percent of all federal taxes. Top 10 percent earners pay 70.6 percent of all taxes. The bottom 50 percent earners pay 2.8 percent of all taxes, with 46 percent paying no federal tax at all.
The top earners are the ones who create jobs by starting small businesses or innovating in existing businesses. Cutting rates at all levels are required to maximize the benefits to all. Those who complain about providing tax reductions to the “rich” would actually penalize the middle class workers through lower wages.
As President Kennedy said so well, “A rising tide raises all boats.”