Letters to the Editor

Tax ultra High net worth individuals

As the U.S. hits its $14.3 trillion debt ceiling, Republicans and Democrats are attempting to negotiate a deal over the debt ceiling that will avert a possible default on the Federal Government’s obligations.

Treasury Secretary Timothy Geithner insists the debt ceiling be raised in order “to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens.”

The Congressional Research Service warned default “would arguably have negative repercussions on both domestic and international financial markets and economies.”

Political debate about the budget is focused on how much to spend and how much to borrow, but there is a viable alternative that is being ignored by both parties: aggressive taxation of America’s wealthiest.

Merril Lynch keeps track of ultra high net worth individuals, people who have a stock portfolio valued at least $30 million. This group holds $15 trillion of the nation’s wealth.

If UHNWI were taxed on those liquid assets at a rate of 10 percent then the Federal Government would accrue the $1.5 trillion revenue it needs this year to meet the nation’s bills.

During the prosperous post-war period, what is sometimes remembered as the “golden age of capitalism,” private enterprise and the wealthiest bore a significantly greater share of the tax burden than they do now.  

In 1968, individual income taxes were 1.4 times that of corporate taxes.

Through the 50s and 60s, private individuals and corporate enterprises were taxed at 91 percent of their income of $100,000, while today they pay 35 percent. Since the 50s, there has been a shift of the tax burden to working people.

In the current debate over the debt ceiling, neither party has advanced the idea that the sector most responsible for the current economic crisis should have to pay for its deleterious consequences.

­— Timothy Prisk

An open letter to Rep. Mike Pence, R-6th District

Mr. Pence,

A new CBS poll said respondents give the Republicans a 21 percent approval rate in their handling of the default issue. Surely you understand why. If not, let me make it clear for you.

We, the people, are not stupid! We know in order to lower the national debt, taxes must be raised for everybody, not just the poor and middle class.

We don’t use a trickle down theory in our family finances. Why? Because it doesn’t work!

Also, putting the retirement pay for people in the Armed Services on the chopping block after they have been fighting and dying in 10 years of war is about as popular as a KKK parade in Indianapolis during the Black Expo.

Use your heads, if not your hearts. Leave the military retirement pay system alone!

Social Security recipients are not happy campers either, congressman. The GOP threat to make drastic changes to that system is political suicide.

So, if you and your fellow Republicans are looking for a permanent vacation way outside the beltway, keep doing what you are doing.

­— Jeff Brailey