From: lbaum@bcsaic.UUCP (Larry Baum)
Newsgroups: talk.politics.misc
Subject: Re: Jerry Brown and lack of thinking
Date: 7 Apr 92 14:35:57 GMT
Organization: Boeing Computer Services AI Center, Seattle

In article <1992Apr3.143821.28216@porthos.cc.bellcore.com> rhf@decoy.uucp (25421-flood) writes:
: 
: Jeez, the discussion in this newsgroup seems to eerily mimic the
: state of political "thinking" in this country's news media.  (Who needs
: to work to produce real rhetoric when a sound-bite will do?) People spout
: opinions, supported (at best) by some ghostly experts or paraphrased 
: journalism (often from questionable sources), then run off.  Relative to the
: Brown flat-tax proposal, it would seem that things ultimately boil down
: to SIMPLE ARITHMETIC.  And as far as I can tell, the SIMPLE ARITHMETIC
: boils down to a tax-break for the majority of tax-payers in this country.
: I am not an accountant or tex lawyer, however, and I am absolutely 
: willing to be shown that Brown tax-plan is "crazy", which
: seem the extent of Clinton's analysis of it.  In fact, I would love to
: see some SIMPLE ARITHMETIC that shows this, because mine doesn't, and some
: fragmentary comment from "All Economists" or the Podunk News-Gazette
: doesn't convince.  Please tell me how the 13% flat rate, with deductions
: for rent, converts to a 26% tax rate for the poor, and a 24% tax rate
: for the middle-class (e.g., me).  I do not understand. I am totally willing
: to understand, but I am also fed-up with half-baked "they said so"
: arguments.  Can someone out there produce actual figures that refute the
: flat tax?  Given the frailty of logic so far in this group, no wonder we
: can't elect a President that has a clue!
: 
: richard flood

The 26% figure is probably obtained by adding the 13% income
tax to the 13% value-added tax, since the poor spend all their
income.  Does VAT apply to food?

Anyway, to answer your main question, the Seattle Times has a
chart on its front page today:

Married couple with 2 children

                $20000 Income (renter) 
                Current  Clinton  Brown     
Std. Deductions  -5700    -5700    -6360
Exemptions       -8600    -8600    -   0
Child Care Crdt  -   0    -   0    -   0
                ----------------------------------------------
Taxable Income    5700     5700    13640
Tax rate           .15     .135      .13
                ----------------------------------------------
Income Tax         859      770     1773
FICA               720      720        0
                ----------------------------------------------
Total Tax Paid    1579     1490     1773


                $50000 Income (home owner) 
                Current  Clinton  Brown     
Std. Deductions  -7383    -7383    -5910
Exemptions       -8600    -8600    -   0
Child Care Crdt  - 900    -1500    -   0
                ----------------------------------------------
Taxable Income   33117    32517    44350
Tax rate           .28     .265      .13
                ----------------------------------------------
Income Tax        4207     3905     5766 
FICA              3674     3674        0
                ----------------------------------------------
Total Tax Paid    7883     6769     5766 


                $300000 Income (home owner) 
                Current  Clinton  Brown     
Std. Deductions -21236   -21236   -17382
Exemptions       -8600    -8600    -   0
Child Care Crdt  -   0    -   0    -   0
                ----------------------------------------------
Taxable Income  270164   270164   292380
Tax rate           .31     .385      .13
                ----------------------------------------------
Income Tax       76866    80897    38009
FICA              8170     8170        0
                ----------------------------------------------
Total Tax Paid   85036    89067    38009

This was done by Stan Woodwell of the Washinton State Dept of
Revenue, based on a computer analysis of more than 2 million
tax returns filed in this state in 1988 & 1989.  Adjusted
Gross income is used except under Brown's plan, which does not
exempt any income.  Deductions for mortgage interest, rent and
charitable contributions are allowed.  A childcare credit is
shown only for the 50000 level because it is most often
claimed by middle income families.  Only 15% of families claim
the credit.

I have not verified the numbers in this article, but it does
confirm my worst fears about the flat tax.  Notice that the
poor do worse, even though the regressive effect of the VAT is
not included in the analysis.

-- 
Larry Baum
Computer Science Organization
Boeing Computer Services     uucp:       uw-beaver!bcsaic!lbaum
(206) 865-3365               internet:   lbaum@atc.boeing.com       
Xref: sparky talk.politics.misc:18043 alt.society.civil-liberty:3422