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Tuxes Fastest-Rising Expense

Click to see original imageA Wall Street Journal eport has confirmed what nost people probably uspected: Taxes are our astest – rising costs and iiggest inflation item. at east for “high budget income” consumers. The publication quoted .abor Department figures ihowing the largest rise in costs nationally for the ieriod 1967 to 1979 came in iersonal income taxes l22.9 percent. Even with rising taxes. Americans haven’t kept up with runaway federal exJenditures, by any means. Sen. Harry F. Byrd, IVa. recently introduced in the senate two Office of Management and Budget tables tracing the burgeoning budget outlays and national debt. The budget surged from $82.6 billion for fiscal 1958: $178.8 billion in 1968; and 5450.8 billion in 1978 to $613.6 billion for fiscal 1981. Huge budget deficits pushed the national debt from $271 billion in 1946 at the close of World War II to $280 billion, 1958: $370 billion, 1968; $780 billion. 1978. and an estimated $887 billion for 1980. Back in the days of greater fiscal restraint. deficit spending was reserved for emergencies such as wartime. But the U.S. debt has more than .doubled in the peacetime iyears since the Vietnam war – generally a prosperous period when we Ishould have been building a surplus. Congress broke its modern-day precedent of deficit budgets by balanciing for the record the one for 1981. Lawmakers slashed spending proposals considerably but still counted on tax increases which most economists estimate in the area of $40 to $60 billion. Republicans, a week before the current Congress recess, sought a 10 percent tax cut which would have partially offset the new increases – but the Democratic – controlled Senate defeated the measure 58-38 on virtually a party line vote. Interestingly, while criticizing the GOP proposal and charging “election year politics.” Democratic leaders promptly announced they’d come up with a tax reduction plan of their own by Sept. 3. Why not a bipartisan effort to enhance acceptability and minimize political bickering on “who gets the credit”? As Sen. John C. Danforth, R-Mo. said during the recent tax cut debate: “To the taxpayer who finds a higher and higher portion of his income taken by taxes and who has a harder and harder time keeping up with inflation, it doesn’t make any difference who got out in front of this issue, Republican or Democrat? For the record, Republican Sen. James A. McClure of Idaho said during the same debate that “seven times last year he offered the Senate an opportunity to vote on tax. cuts and seven times a majority of our colleagues primarily on the other side of the aisle – voted against a cut.” The urgent need for spending and tax cutbacks is illustrated further by the steady advance of “Tax Liberation Day” recognizing the date the average taxpayer begins “working for himself” after earning enough to pay federal state and local taxes. This year liberation day fell on June 12. The dat: was June 6 last year. Rep William E. Dannemeyer. R-Calif., observed that “il we do not start cutting taxes pretty soon, the Fourth of July will take or a whole new dimension.” Few would question tha the tax – budget- debt – in flation setup needs drastia surgery to ease financia burdens, get the economy moving out of the curren recession, boost employ ment, and restore con fidence. The ultimate solution: may bring with them 2 great deal of pain ani sacrifice as well as the crumbling of som: cherished empires 0 special privilege, bu nothing that would excecl the pain that could be suf fered by rank – and – fill taxpayers if those solution: aren’t tried. Perhaps the comfortabl; entrenched caree bureaucrats and jadel politicians in Washingtoi don’t believe it yet, but th taxpayers’ tolerance t their burden has its limits and once they are ex ceeded, the far – from dead tax revolt will rear it head anew.