THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Tuesday, November 8, 1994 TAG: 9411040025
SECTION: FRONT PAGE: A14 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 32 lines
Columnist Molly Ivins (Perspectives, Oct. 21) got it half right. Wages and salaries are in fact declining.
In 1963, I was a captain in the Marine Corps and with flight pay earned about $11,500. On that amount I supported a wife, two small children, a Ford station wagon and a Morgan sports car and purchased a new home.
Using a 7 percent inflation rate, $11,500 had the buying power of about $93,000 today. The last time I saw a pay schedule, I believe a captain drawing flight pay and allowances earned about $50,000.
Where Ms. Ivins was forgetful was in taxes. In 1963, I paid about $550 in federal income taxes, $90 for Social Security and $105 in property taxes. There were no state income taxes or personal-property taxes.
The maximum Social Security tax has increased about 2,800 percent, and other taxes have similar increases so that wage earners have not only declining incomes but a far greater tax burden. Despite the low tax burden of 1963, I recall it as a good time, when government seemed to work pretty well.
JAMES R. CAMPBELL
Virginia Beach, Oct. 21, 1994 by CNB