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Tuesday, November 21, 2006
Rich Tucker :: Townhall.com Columnist
An open letter to Senator-elect Jim Webb
by Rich Tucker
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Okay, complete disclosure: I didn’t vote for you. But my wife did, so the split in our household was 50-50, which almost exactly mirrors the statewide result of your victory over Sen. George Allen (49.59-49.2 percent). Oh, and I predicted you’d lose this election, a guess I was wrong about (by fewer than 9,400 votes, but in politics a win by an inch is as good as a win by a mile).

So congratulations on proving me wrong.

Even without my vote, though, you’re going to be my senator for the next six years, and I’d like to see you succeed. However, so far you’re sounding more like a redistributionist Ted Kennedy clone than a conservative who voted for George W. Bush in 2000. Let’s look at some of your odd assertions in the Nov. 15 Wall Street Journal.

“America’s top tier has grown infinitely richer and more removed over the past 25 years. It is not unfair to say that they are literally living in a different country.” Oh, how so? “The top 1 percent now takes in an astounding 16 percent of national income, up from 8 percent in 1980,” you write. Further, you insist that “the tax codes protect them, just as they protect corporate America, through a vast system of loopholes.”

Indeed, the rich do earn a lot. But let’s consider how much that top 1 percent gives back to the country in taxes. According to the IRS, in 2004 the top 1 percent of tax filers paid 36.89 percent of federal income taxes. In other words, their tax burden is twice as high as their share of national income. If anything, wealthy people are overtaxed.

Interestingly, the IRS also says that the bottom 50 percent of taxpayers shelled out a total of 3.3 percent of all taxes. It’s difficult to see how we could cut taxes for them, since they already pay next to nothing.

Mr. Webb, you also claim that these wealthy people “own most of our stocks, making the stock market an unreliable indicator of the economic health of working people.” Well, those workers would probably disagree.

The Securities Industry Association reported last year that, “The number of households owning equities has increased more than three-fold since the early 1980s. Today, nearly 57 million U.S. households, half of all U.S. households, own stocks directly or through mutual funds.” Clearly, more people than ever are enjoying the benefits of being in the market.

Your piece concludes, “Our government leaders have no greater duty than to confront the growing unfairness in this age of globalization.” But you offer no solutions. So, let me make some suggestions that would begin to rectify the unfair situations mentioned above.

First, let’s dump our convoluted tax system. Continued...

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About The Author

Rich Tucker is an editor in Washington D.C. and a columnist for Townhall.com.

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Webb and the Flat Tax
To Clyde9 -- Webb wasn't in the Naval Reserve because he was too disabled through his Marine service as one of the most decorated fighters in the Vietnam War; you know, where he picked up his Navy Cross, Silver Star, 2 Bronze Stars, and 2 Purple Hearts. That was before he embarked on his career as a defense aide (to John Warner) lawyer, legislative counsel, novelist, SecNav, journalist, and producer.

Next, I agree with Jeff on all his points about the flat tax.

The flat tax would an unreasonable and unattainable aspiration even if I did support it. It will never fly politically. Plus, there is no evidence it would work. Using Eastern Europe, which had no history of capitalism and was moving from an incredibly inefficient, corrupt, and mordant state-run system to a more open, and privately run system, is simply apropos. They have been building their economies from the ground up. We don't have that luxury.

Regarding the disparity between rich and poor and the threatened middle class, Mr. Webb's points are well taken. Look at the Bureau of Labor Statistics recent report. Job growth was seven million short of population growth, U.S. manufacturing lost 17% of its work force, communications and electronics manufacturing lost between 25% and 43% of their workforces, and so on and so on. As a matter of fact, there are significant drops in all categories of goods-production in this country, with insufficient corresponding increase in service-related jobs. And of course, those service-related jobs won't help when the cheap goods being marketed to this country become more expensive as the economies of the countries producing those goods improve and their wages and costs of production rise. It doesn't help that the Chinese have an artificially devalued yuan. Oh, and let's not forget that we're in hock up to our eyebrows with the Chinese thanks to the credit card spendthriftery of this Administration.


flat tax, etc.
low wage earners are going to invest in the stock market? with what? they can't afford to make ends meet as it is.

as far as the flat tax goes.....what about the millions and millions of self employed people who have to spend money on equipment, supplies, and travel to earn a living? if all these deductions dissappear, then they are at a completely unfair advantage to a worker in a company who's equipment, supplies, utilities, etc, are all paid for by the company.

and does this mean that all businesses as well will pay a flat tax? none of their expenditures for equipment, buildings, car and truck fleets, utilities, office supplies, travel, etc.....NONE of that is deductible?

a "floor amount" to cover today's deductions is completely unfair. every business and every self employed person has different levels of expenditure for business supplies and equipment. those expenditures vary from year to year as well depending on the nature of that years business, etc.

i don't see how that's ever going to fly.

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