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To: flatsville who wrote (108317)	6/12/2001 6:52:29 PM
From: GraceZ	Read Replies (2) \| Respond to of 436258

The rise in tax receipts was a direct result of lowered marginal rates. Correct me if I'm wrong but I believe that the lowering of marginal rates occurred prior to 1986, right? You were the one who thinks that the rise in tax receipts occurred only after Congress closed loopholes in '86. You believe that because you can't make a logical connection between high marginal tax rates and people engaging in non-productive tax sheltering. Or the connection between low marginal rates and people choosing to engage in productive enterprises. You aren't alone, most people can't make that connection because most people don't understand the forces that move capital from one area to another. Baltimore didn't need more disaster relief. It had enough disaster relief to kill it in the seventies. The second wave of middle class flight (I say middle class flight because even the black people wanted out) occurred in the nineties and was caused by any number of things not the least of which was the sudden shift in tax treatment of residential investment real estate. Failing schools, crack, car jackings and a general migration to the 'burbs and out west also contributed to the flight. The city bottomed out about six years ago and is coming back primarily because we have a rising black middle class that has stopped fleeing and started buying houses. The reason they are buying houses is because they now have pay checks.