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

DATE: TUESDAY, March 30, 1993                   TAG: 9303300400
SECTION: EDITORIAL                    PAGE: A-4   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

SIGNAL IS TO SPEND, NOT SAVE

WE ARE still hearing of plans to make 85 percent of Social Security benefits subject to income tax, rather than the present 50 percent. In Washington, it is being referred to as a spending cut. To 20 percent of those receiving benefits, it is a benefit cut. But no one in Washington has the backbone to call it such.

According to the March issue of the AARP Bulletin, a couple with income of $40,000 would pay additional income taxes exceeding $600 a year. Why not just tax all benefits for everyone and then help those who really need help with earned income credits? That way we could have 100 percent of Social Security beneficiaries making "investments" rather than just 20 percent.

Congress may also want to take a look at the Supplemental Security Income program. This part of the Social Security program has nearly doubled in size, from $12.5 billion in to $23.4 billion this year. Most of the increase is due to care of infants who become exposed to drugs, alcohol and the HIV virus while in the mother's womb.

The talk of making estates of more than $200,000 subject to inheritance tax is another shot at our elderly. After saving through IRA, annuities, accounts at savings bank, etc., - so at retirement time the elderly would have assets to help them through later years without being a burden on their children or government - the signal is being sent to spend rather than save, particularly when you hit the $200,000 mark.

We retirees want to pay our fair share to help our country overcome the large debt we have incurred. We understand the need to raise taxes, but only after spending has first been cut. And as for the cost-of-living adjustment on Social Security checks, I will gladly give up mine the same day salaried and hourly workers and members of Congress give up theirs. CHARLES H. DROSTE ROANOKE

by CNB