Rostenkowski’s Deficit Plan

Rostenkowski is to be commended for his courageous proposal to reduce our horrendous federal deficit. The key feature of his proposal is the elimination of the “tax bubble” raising the rate for the very wealthy from 28% to 33%.

Robert Kuttner, writing in The Times (Op-Ed Page, Nov. 13, 1989) pointed out that so much red ink in our federal government comes from under-taxing our nation’s rich. “Simply collecting the taxes that the richest 1% paid back in 1977 would solve the problem.

“In 1988 . . . the wealthiest 1% of Americans received a record 12.5% of the national income, or about $450 billion. The average household in this group enjoyed an income of about $452,000. Simply collecting the taxes that the richest 1% paid way back in 1977 would wipe out half of the budget deficit.”

President Bush and former President Reagan argue that allowing our nation’s rich to become disproportionately richer is good for our economy. Industrialists need the capital to expand.

But proponents of that view have yet to explain the great boom of the 1940s, 1950s, and 1960s when the economy enjoyed record growth and the distribution of income was more equal.

President Bush is correct when he promised no new taxes. The issue isn’t new taxes. The issue is a fair tax program. We must return to the tax program of 1977.

All of us must pay our fair share, the wealthy as well as the middle class and the poor.

S.M. ROSEN

Newbury Park