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To: steve harris who wrote (59459)	3/11/2004 10:18:43 PM
From: Charles Tutt	Read Replies (1) \| Respond to of 64865

Pick up a book on tax theory some time and read it, especially the part that discusses progressive versus regressive taxes and marginal utility. Some things in the tax code are the result of pure politics, but often those favor special interests who lobby hard for them. The stuff you seem to be complaining about isn't the problem. JMHO. Charles Tutt (SM)

To: steve harris who wrote (59459)	3/11/2004 11:43:49 PM
From: Ira Player	Read Replies (1) \| Respond to of 64865

It isn't the higher tax rates as income goes up that is unfair...it is the "phase outs" that create unfair situations. Take the "phase out" of the Deductible IRA contribution. A single taxpayer that earns $50000 is nominally paying a 25% marginal tax rate. However, if he/she qualifies for an IRA deduction, that deduction phases out between $50000 and $60000 in income. So for each $1000 in additional income, he/she must also pay that 25% tax on the $300 in deduction that is eliminated. This is an actual marginal tax rate of 32.5%! Why should that taxpayer pay a marginal tax rate that is nearly as high as the 33% rate that is supposed to kick in at $143500? If the argument is that higher income people can afford to pay more, just increase the marginal tax rates explicitly and be done with it. It's these phase outs that are most unfair to the middle class of the USA. Ira