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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Feb. 15, 1977)
Page 2 THE BATTALION TUESDAY, FEBRUARY 15, 1977 Opinion/Commentary/Letters Government, taxation policies Reform needed Limits needed By SHARON TAULMAN Tax Reform: two words that arouse emotion in every taxpayer. And with good reason, no matter which side you’re on. Today it is too difficult to get rich and too easy to stay rich. Recent studies have shown there has been no substantial change in the distri bution of wealth in the United States since the Civil War. Many al ternative plans have been offered for tax reform, but the expansion of the following tax policies seem the best method for relief to the low and middle income families. The minimum tax has been in ef fect since 1969 and is designed to ensure that everyone pays some tax, even when income is from items like capital gains. (A capital gain is income that results from a sale of property that has been held for a sufficient length of time as defined in the tax code.) Only 8% of Ameri- ‘Today it is too difficult to get rich and too easy to stay ricK can taxpayers can classify their in come as capital gain, placing that amount in a lower tax bracket. Although the minimum tax is es sentially a tax on loopholes and is in addition to regular tax, some loopholes still allow tax avoidance. The requirements now in effect allow a large break, even before the individual pays his minimum tax. One solution is to close any loopholes allowing people to get around this law and to lower the re quirements for minimum tax, so that people in upper income brack ets must pay it. Another necessary reform is the negative income tax. Currently the closest thing to a negative tax is the earned income credit, which bene fits low income families in the $4000-$8000 range. The maximum credit is $400 and applies to families with a $4000 income. The credit de creases steadily down to $8000, at which point no refund is given. The credit is handled like any other overpayment: the taxpayer receives the refund if the credit exceeds total taxes. This earned income credit should be expanded to include more families and the amount they are el igible to receive should be in creased. This would allow more low income families to receive money. An important concept that will drastically affect income tax policy is the change from deductions to cred its. A deduction reduces taxable in come and only indirectly affects taxes, while a credit reduces taxes directly because it is subtracted from the computed tax. A deduction results in more tax saving for those in a higher income bracket. President Carter last week out lined his tax revision plan for next fall that would replace the current $750 personal exemption and $35 per person credit with a credit of about $240 - $250. This would result in higher taxes on people in the upper brackets and lower taxes on those in the lower or middle brackets. This is the first step towards replacement of deductions with credits. Besides these three main re visions, an end to the myriad of tax breaks (of use mainly to businesses and wealthy individuals) would in crease tax revenue, while increasing the tax burden on the rich. Eliminating double taxation of cor porate profits is another needed re form. Double taxation occurs when businesses pay tax on their earnings and stockholders pay taxes on divi dends from the earnings. Its elimi nation would give a break to the thousands of citizens that must pay tax on dividends they receive. The rich do not pay their share and it is time to close the loopholes that allow them to evade taxes. 88.5 per cent of American families earn less than $25,000 per year, yet these are the people who pay the most. It is time for all Americans to shoulder their share of taxes and relieve the pressure on the low and middle in come families. The smallest tax brackets and the steepest increases occur at the bottom of the scale. In 1974, 622 Americans with incomes of at least $100,000 paid no taxes. These inconsistencies can only be remedied through tax reform. Only then can we say America has a pro gressive tax system. By MARK ELAM This past year marked the bicen tennial anniversary of the American Revolution, a revolution in which concerned Americans dared resist the tyranny of an abusive govern ment in order to secure their free dom. Our forefathers rebelled against the greatest power in the world largely as a result of high taxes, taxes which seem paltry in compari son to those we now pay. Our gov ernment took 44 per cent of the na tional income through taxation in 1976 and this trend is bound to con tinue unless halted by concerned Americans who openly strive to check this obesive growth. Consider the following facts: Be tween 1929 and 1976 federal spend ing increased by some 15,000 per cent while population increased by only 80 per cent. State and local revenues alone increased 2000 per cent in the last forty years. Gov ernment now costs each American an average $2,300 a year, or $9,200 for a family of four. As to what effect Jimmy Carter’s proposed economic program has on our situation will depend largely on his hopeful realization that a tax cut is really no tax cut at all when ac companied by a substantially larger ($15 billion) increase in deficit spending. The only way govern ment can finance this deficit spend- ‘Government should not be permitted to do for us the things we can better do for ourselves. . . . ’ ing is by borrowing or by printing and inserting worthless money into the economy which in turn causes inflation. And inflation not only steals from those people with steady incomes but it also hits even harder those who live on fixed incomes or who are unemployed. Sharon Taulman is a junior major ing in accounting and is vice chair man of Political Forum. The Battalion Opinions expressed in The Battalion are those of the editor or of the ivriter of the article and are not neces sarily those of the University administration or the Board of Regents. The Battalion is a non-profit, self- supporting enterprise operated by students as a uni versity and community newspaper. Editorial policy is determined by the editor. LETTERS POLICY Letters to the editor should not exceed 300 words and are subject to being cut to that length or less if longer. The editorial staff reserves the right to edit such letters and does not guarantee to publish any letter. Each letter must be signed, show the address of the writer and list a telephone number for verification. Address correspondence to Letters to the Editor, The Battalion, Room 216, Reed McDonald Building, College Station, Texas 77843. Represented nationally by National Educational Advertising Services, Inc., New York City, Chicago and Los Angeles. Mail subscriptions are $16.75 per semester; $33.25 per school year; $35.00 per full year. All subscriptions subiect to 5% sales tax, Advertising rates furnished on request. Address: The Battalion, Room 216, Reed McDonald Building, College Station, Texas 77843. United Press International is entitled exclusively to the use for reproduction of all news dispatches cred ited to it. Rights of reproduction of all other matter herein reserved. Second-Class postage paid at College Station, Texas. MEMBER Texas Press Association Southwest Journalism Congress Editor Jerry Needham. Managing Editor James Aitken Assignments Editor Rusty Cawley Features Editor Lisa Junodl News Editor Debby Krenek News Assistant Carol Meyer Photography Director Kevin Venner Sports Editor Paul Arnett Copy Editor Steve Reis Reporters George Maselli, Paul McGrath, Lynn Rossi. John Tynes, Lee Roy Leschper Jr., Mary Hesalroad, Jan Bailey Asst. Photo Editors Tracie Nordheim, Mike Willy . If trends continue unchecked our government will be taking 50 per cent of our entire income by 1984. Indeed it seems that all too many intelligent Americans are allowing these deplorable trends to continue because they have been led to be lieve that “Big Brother knows best. Government should not be permit ted to do for us the things we can better do for ourselves, and we should not hesitate to remind gov ernment that it exists only to serve us, not for us to serve it. Do we choose to forget the warn ings of men such as Samuel Adams? “It is an essential and unalterable right in nature.. . . that what a man has honestly acquired is abso lutely his own, which he may freely give, but which cannot be taken from him without his consent. Or do we accept the new logic such as that we hear from the ever flowing mouth of Senator Hubert Hum phrey. “ ‘Less government’ is noth ing more or less than a disguise for a new form of racism.” Texas A&M University DIRECTORY $2.50 Available at Student Publications Office 216 Reed McDonald Bldg. Texas A&M Bookstore University Bookstore In such a statement exists the failure to realize that when govern ment takes from one man to bestow on another, it diminishes the incen tive of the first, the integrity of the second, and the moral autonomy of both. The failure of liberal social policies as epitomized in the eco nomic mismanagement of New York City and the increasing failures and burdens of England’s and other country’s social programs, should all serve as warnings against increasing rates of taxation and inflation, yet the position of liberals still fails to show an understanding or concern for the problem. ivh lodtal :el He; ,0,000 sniflls iwolle ie tiro minf l-fram andb g the lab “Government resources and powers must be mobilized as never before in an active, deliberate way.. . . It should harness all its array of authority — particularly its powers of taxation and regulation. The only reassuring thought about this statement by Senator John Tunney is that he is now former Senator John Tunney. Return bell to its rightful plan An excellent example of the fail ures of liberal social programs is the Bureau of Indian Affairs. In 1974 there were 792,000 American In dians, 442,000 living on reser vations and receiving BIA subsidies. If you divide the BIA budget by the number of Indians served, you get an income of $5,280 for a family of four. Yet the estimate of actual fam ily income at the time was $1,500. Given such figures, one can easily believe the rumor that the typical Indian family consists of a father, mother, several children, a welfare worker, a sociologist, and an an thropology professor with two graduate assistants. Our country was founded upon the idea that liberty is indivisible, and common sense dictates that political freedom will not long exist without economic freedom. But it seems some people in this country would have us to believe the indi vidual freedom and restricted gov ernment our forefathers fought to secure can no longer work in the modern era which we now live. In response to this belief I must reply, “Perhaps an invincible attachment to the dearest rights of man may, in these enlightened days, be deemed old fashioned; if so, I am contented to be so.” — Patrick Henry Editor: A matter has recently come to the attention of the Liberal Arts Stu dent Council of which we feel the student body should be made aware. During the Bicentennial, the Texas A&M Liberty Bell (which traditionally hung in the rotunda of the Academic Building) was do nated by the University to hang in the State Capital in Austin. This ap parently was done before the stu dent body and faculty had a chance to say “no;” however, most agreed that it was a worthy cause, and all rested assured that the bell would be returned to its proper place at the end of the year. Now surely the administration must realize that it is 1977. The Bicentennial Year ended six weeks ago, and where is our bell? In stor age, of course. It’s true, they are painting the Academic Building. But from what we hear, this is not the problem. When the new addi tion to the library is completed (which won’t be any time soon) our bell will be placed — you guessed it — in the library. Is this another Aggie joke? The liberty b< 11 does not belong in the library; it belongs in the Academic Building. There certainly must be some reason for this move; but in our opinion, this is one time tradi tion should stand. We encourage the administration to take another look and reconsider this decision. —The Liberal Arts Student Council Author’s note: All factual evi dence offered in the above or in prior or subsequent articles is pres ented not only as FACT but also as a CHALLENGE to the reader. “You have a great opportunity to advance the cause of truth. Don’t believe everything you are told without checking to see if there is another side — and that goes for what I’ve just written. Check me out. R. Reagan Put office space elsewhere Editor: I agree totally with Steve Mayer and Scott Gregson, who brought to light the fact that Legett Hall might be turned into office or classroom Mark Elam is a sophomore politi cal science major and is vice- president of Texas AlrM Young Americans for Freedom. space. I can understand the need for of fice space since Texas A&M is a growing system, and 1 can definitely see where they need more class room space, but to take badly needed dorm space for this purpose is beyond my comprehension. Just looking over the campus, one can UNFINISHED FURNITURE CENTER Tables • Chairs • Hutches • Planter Stands • Parquet, Coffee, End, Lamp & Sofa Back Tables • Barstools • All Kinds of Desks, including Roll Top • Chests (all sizes) • Bookcases (custommade) • Hat Trees Many More Items To Choose From Come In And Browse 314 N. MAIN 822-7052 DOWNTOWN BRYAN CLASSES ON CHRISTIAN DOCTRINE 7:30 p.m. Wednesday EPISCOPAL STUDENT CENTER 902 Jersey (southside of campus) 846-1726 Everyone Welcome Fr. James Moore, Chaplain AGGIE NIGHT BUFFET EVERY TUESDAY 6:00-8:30 P.M. ALL THE PIZZA AND SALAD YOU CAN EAT FOR $1.89 CHILDREN UNDER 6 - 99c THE NEW PIZZA INN OF BRYAN 1803 Greenfield Plaza Next to Bryan High 846-1784 PIZZA INN OF COLLEGE STATION 413 Texas Avenue S. 846-6164 Pizza Inn see that there are places that the University could put offices or class rooms. It can’t he that they don’t have money for such building proj ects. What is the reason they want to transform good dorm space, into offices and classrooms? And while I’m talking about it, is that office space for A&M Univer sity use or A&M Conglomerate use? University use is o.k., but Con glomerate office space could go elsewhere. After all, the main pur pose of this University, I believe, is education. Seems some people forget that. —Charlie Andrews, '80 lieve that it would beeffec on the A&M campus. —Mandy I ‘Counseling lizon< J to lif< Arrival | j ust l ,vhat inadequate Smoker section Editor: Student counseling is inai 0 or nonexistent at Texas AM versity. I have not found the: advisors at A&M to beveryln I did not receive a lettert advisor until over a mot' passed my first semesta .. When I was finally able lot _ appointment to see himliei needed in Shis a have any of my transcripts! ner Editor: I am on the board plan in Sbisa and am concerned with the policy of allowing people to smoke after their meals in the cafeteria. Many people are allergic to ciga rette smoke and become ill if they breathe too much of these fumes. I find it nauseating to inhaje someone else’s smoke as I bite into my food. I’m not asking that these smokers be deprived of their privilege, but rather that those who do prefer to smoke eat in a “smoker section.” Airlines have utilized this method for the convenience of their passengers, and I have seen special places designated for smokers in other school cafeterias. This method of removing those people who are irritated by others’ habits has proven effective and I be ll c said he would find tia would like to see me agai time I returned I found he no information on me. I have changed majors first year at A&M, but 11; experienced less than academic counseling. I think students are confus who their advisors areorwkl functions are supposed tole Friends that I have talkd DOUE they either never go to selors or would not knovna go to find them. Seeing your advisor registration to sign tit schedule which you haveselt unfortunate. I think the era should make an effort to seei their students at least oncti ter. A closer relationship bet student and their academic would make a great schooled —Henry Mil c ter. j7L FABRIC SL Complete Stock of Fashion Fabrics “In Our 30th Year of Selling Fabrics” DOWNTOWN BRYAN University Cleaners 112 College Main Northgate GET YOUR DANCING CLOTHES READY NOW FOR THE WEEKEND! Dry Cleaning • Alterations • Repairs “A bore is a person who talks when you wish him to listen" ®