University Daily Kansan / Friday, January 19, 1990
5
Tax
Continued from p. 1
cut for the rich with a cut in capital gains taxes, while spurring a break for middle- and low-income people in the United States with a reduction in Social Security taxes.
"This is an effort to get me to try to raise taxes on the American people by the charade of cutting them, or cut benefits," Bush said.
White House press secretary Marlin Fitzwater, lumping the Moylan and Hollings proposals together, said: "First we had the tax cut and now we have the tax increase. Can cuts in benefits be far behind?"
Moynihan's proposal would save workers $7 billion in Social Security taxes this year and $55 billion in fiscal 1991.
The payroll tax, paid by both employers and employees, rose to 7.65 percent Jan. 1 from 7.51 percent.
and it is levied on wages up to $51,300 instead of $48,000. That means a wage-earner could pay as much as $3,924 in Social Security taxes this year, an increase of about $319 from 1989.
Moynihan argues that the payroll tax should be reduced because mounting surpluses in the Social Security trust funds are being used to help offset large budget surpluses instead of being put away for future retirement benefits.
The surpluses are the result of a 1983 agreement between the Reagan administration and Congress in which taxes were raised to build up annual surpluses eventually totaling hundreds of billions of dollars to pay for baby boomers' retirement costs in the next century.
Moynihan, in Jerusalem at the end
of a trip to Morocco and the Middle East, was unavailable for comment. His administrative assistant, Paul Browne, said Bush was engaging in "a scare tactic."
"The notion that (a payroll tax cut) in any way hurts recipients is nonsense." Browne said.
Quayle said Moyhan's proposal gives Republicans their first opportunity to appear as the protector of Social Security.
"Let me tell you something, cut these taxes the way that Moynihan is talking about, you have to cut benefits at some time, and the president and the Republican Party now have an opportunity to show the American people, once and for all, that the Republicans are as committed to the integrity of this Social Security trust fund as anybody," Quayle said.
Barry, who repeatedly has won re-election with large majorities, has
lost support during the past four years because of allegations of drug use and corrupction convictions against several members of his administration.
Jesse Jackson fueled speculation that he would challenge Barry when he moved to Washington last year. However, Jackson repeatedly has said that he would not challenge Barry. Jackson said through a spokesman he would have no comment on the arrest.
Drug use among the city's young men is blamed for a sharply rising murder rate — a record 438 homicides were committed last year compared to 369 the year before.
Federal sources said Barry was taken to the FBI's national headquarters. That building has no detention cells.
The mayor, the city's second under home rule, was led away by under-cover police officers and FBI agents, the station said, and his driver and bodyguard were led away separately.
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He said the taxpayer then would get a hearing with the local
Reappraisal and classification valued the homes at a nearly equal amount; raising the tax on the $30,000
A special session held by the Legislature in December pushed the tax due date back to January 16. Allen said that if the proper protest forms were filed, only 25 percent of the tax bill needed to be paid by that time.
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house, Solbach said.
He said reappraisal resulted in more equitable taxation.
Top city officials were meeting late Thursday night to assess the arrest. City Council Chairman David Clarke, who is running for mayor, called the arrest "a tragic moment in our city." He said the mayoral candidate, said the arrest "changes the political landscape of the city."
Solbach described how property taxes could have increased because the property was undervalued. He compared two identical houses, one built in 1964, the other built in 1986. In 1964 the house cost $30,000; in 1986, $100,000. Because there was no reappraisal, one homeowner could pay taxes on $30,000, the other on $100,000.
"Some of those people out there are holling because they don't want to pay their fair share," Solbach said.
Although rumors about Barry and drugs had surfaced throughout the last half of his tenure as mayor, no charges had been brought before Thursday.
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State Sen. Jim Allen, R-Ottawa, attributed a portion of the increase to the removal of the state inventory tax, which shifted some of the tax burden to homeowners and small businesses. He said some properties were undervalued in the first place.
But he and Allen said there also were increases resulting from errors in the reappraisal process. The Legislature has taken a number of steps to resolve those problems and to ease the burden of tremendous tax increases.
than 50 percent from the previous year.
A $93 million circuit breaker was approved by the House during the special session. But the Senate failed to approve the measure, which would have given $82 million to small businesses and $11 million to homeowners.
appraiser.
Continued from p. 1
"We have had a hard time with people being able to show us how the money will get where it is really needed." Allen said.
Reappraisal
As the 1990 session begins, several other circuit breaker proposals are being considered. Solbach said that ceilings on the amount of taxes local governments could collect and abolition of the property tax were possible alternatives. He said if property tax were abolished, it would be replaced by alternative taxes.
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