
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, March 23, 1992                   TAG: 9203230188
SECTION: EDITORIAL                    PAGE: A8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

NOT THE RICH, BUT MIDDLE CLASS ARE GREEDY ONES

IN 1961, THE top 20 percent of people who filed income tax returns paid about 38 percent of all income taxes. In 1970 it was 39 percent, in 1980 63 percent and in 1989 74 percent.

Clearly, these data indicate that the top income-earners are paying a higher share of taxes after Reaganomics. In fact, it is the so-called middle class who are not paying their fair share: They pay about 25 percent of income taxes, while they comprise at least 60 percent of the taxpayers.

Taking money from the most productive members of society (measuring productiveness by income) and distributing it to the least-productive does not make economic sense, in that it will produce no new jobs. It is good charity but poor economics.

Convincing data show that in the 1980s, all groups increased their income after income taxes were paid. The upper-income groups paid more taxes, and all other groups paid less. The increases in Social Security payments necessitated by a failing system offset income-tax relief.

Great Society programs have failed to turn us into a great society. By taking 50 percent of gross national product vs. 25 percent in 1960 (the Japanese government takes 25 percent), government has turned us into a welfare state. The middle class has adopted this welfare mentality, constantly turning to the upper-income groups to pay for their good intentions, especially toward themselves.

The large federal deficit is not due to the rich not paying their fair share. It exists because we have more will than wallet. Total non-defense spending has doubled since 1970 (in constant dollars), and the rate of spending has exceeded tax revenues ($1.58 for every $1 increase in taxes). The highest-income group now pays more than three times what the rest of us are paying. The greedy ones are the middle class.

ARTHUR G. HILLMER

COVINGTON

by CNB