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Guest Commentary: June 9, 2001
Taxes: Isn't One-Third Enough?
The Honorable Don Nickles
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Summertime is finally here.
It's not the season for quizzes, but here is an easy one:
Which of the following tax rates do you think is fair to you and the federal government - less than 10 percent; 10-20 percent; 20-30 percent; or greater than 30 percent?
If you chose any answer representing less than 30 percent, you agree with 8 out of 10 Americans.
Compare that to the current tax code. The top income-tax rate is 40 percent - well over one-third. The bottom rate is 15 percent. On top of that are federal payroll taxes deducted from your paycheck for Social Security and Medicare - another 15.3 percent of wages. So even the lowest income-tax payers are at or above 30 percent.
For example, for a single worker earning more than $27,050, the marginal federal tax is more than 43 percent - half again above the limit most Americans think is fair. That means for every additional dollar made over $27,050, the government takes 43 cents. And remember, state and local taxes are added on top of that. Federal income tax rates should be lowered, so that no taxpayer is paying more than one-third of his or her income to federal government.
Congress is working diligently to give taxpayers in Oklahoma and across America a little something extra to celebrate this summer -- more of your hard-earned income kept in your pocket -- by sending a tax cut package to President Bush before Memorial Day.
Earlier this month, we passed a budget that allows for the largest tax cut in 20 years. Now, we are working to write a tax cut bill to make that happen. Because taxpayers have been sending more money to government than it needs, we are expecting a surplus of more than $6 trillion over the coming decade. Under our plan, taxpayers will be able to keep about one-fifth, or $1.35 trillion, of that surplus.
Think about that in numbers that are a little easier to comprehend. Right now, the government is spending $6,713 per person in America. The government is collecting $7,736 per person. That’s $1,023 per person too much. Our plan to let taxpayers keep a portion of that surplus is responsible. It allows us to pay down the debt and protect the Social Security and Medicare trust funds. Plus, it provides for unforeseen emergencies, expansion of Medicare prescription drug coverage, and increased spending on America’s priorities.
Unfortunately, some in Congress are working just as diligently to keep your money in Washington, expand big-government programs and have plenty of cash leftover to create new ones. They think they can spend that extra $1,023 better than you can. They use the same tired, class warfare rhetoric that has kept more of your money in Washington for the past 20 years. They believe one-third is not enough.
I disagree. Of course, the federal government can always spend more money, hire more bureaucrats and create more federal programs. The question is, should we?
In a time of surpluses, shouldn't the people who have been paying the bills be able to send in a little less? Isn’t one-third enough?
Note: Senator Nickles issues a weekly column. The above is from June 4, 2001.
 How to contact Sen. Don Nickles (R-OK)
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