To: Robert Douglas who wrote (3008 ) 2/14/2001 5:06:13 PM From: Zeev Hed Read Replies (3) | Respond to Robert, I wonder if the "egalitarian" administration would accept a tax cut having the following "flavor", instead of changing the brackets, we should simply give implement a "floating" tax credit, let me explain. Right now the forecasts are for surpluses, and it is my opinion that a government surplus which exceed 2% of GDP, leads directly to a recession (I have explained that numerous times, and the history of prior surpluses bear witness to that tenet). So we may want to pay down some debt, at a rate that does not exceed lets say $100 to $150 Billions per year. That still leave us with big surpluses going forward. Well let say we want to shave $160 MM pr year from the tax receipts side (I would say "on the average"), and let us assume we have exactly 160 MM tax payers (counting married couples as 2 tax payers). Simply take the $160 Billion per year and give a tax credit of $1000 to each payer. That will partially alleviate the "marriage" penalty tax. It will be as fair as one can hope for (every tax payer get the same credit). Those that pay less than $1000 in taxes will pay none, and those that have their $1 billion a year in a 20% tax bracket don't really need more of a "break".
