FLAT TAX FOR MIDDLE CLASS
November 29, 2007
Middle-class Americans generate little or no national savings, undermining our way of life because middle-class strength and growth represent the backbone of American life, says Harold Ford Jr., chairman of the Democratic Leadership Council.
We've had four straight years of rising productivity and falling incomes; and the costs of a middle-class life have soared:
- In the last five years, college costs are up 50 percent, health care up 73 percent, and gasoline more than 100 percent.
- Rising housing costs have driven people farther and farther from their work.
To address that challenge, there are some reforms that need to be undertaken, says Ford, including:
- A middle-class flat tax where families with an income of under $150,000 pay an effective tax rate of 10 percent.
- Permanent capital-gains tax cuts on a sliding scale that encourage investment and increase savings for a majority of Americans.
- A Cut in corporate tax rates to 30 percent with an even lower rate for new knowledge-based industries in energy technology, biotechnology and other science-rich sectors.
Source: Harold Ford Jr., "Flat tax for middle class," Washington Times, November 29, 2007.
Browse more articles on Tax and Spending Issues