Accurate math key in flat tax debate

Regarding Mr. Tracy's letter of Thursday ("Flat tax plan constitutes 'affirmative action' for rich"), he grossly misrepresents either how the flat tax works, grammar school mathematics, or both. In particular he states "if everyone across the board pays a 'flat tax,' then the person who makes $230,000 will proportionally pay 10 times less income tax than the person who makes $23,000!" This is nearly as humorous as NBC's recent foray into asteroid science.

The flat tax derives its name from the fact that taxable income is taxed at the same rate (the same proportion!) regardless of income. Mr. Tracy's example is particularly inept when one considers the exemptions clearly stated in Mr. Goldensen's original article (13,000 per adult). A couple earning $23,000 has no tax liability- 2 exemptions at $13,000 is $26,000, greater than their income- while the couple earning $230,000 has a taxable income of over $200,000 and would pay on the order of $40,000 toward the Federal Income Tax on Individuals. This state of affairs Mr. Tracy refers to as "affirmative action for the rich." Clearly, the rich are taxed far more heavily than the poor in his example.

We cannot sensibly discuss the merits of the flat tax system unless we all calculate our sums correctly. This Mr. Tracy has failed to do.

The author thanks an anonymous reviewer whose comments improved the quality of the text.

By James N. Head (letter)
Arizona Daily Wildcat
February 25, 1997