Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.issues From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: issues Thu, Aug 13 1992 Date: Thu, 13 Aug 92 05:17:49 EDT Message-ID: 08-13 0000 DECISIONLINE: Issues & Debate USA TODAY Update Aug. 13, 1992 Source: USA TODAY:Gannett National Information Network Here are some of the issues and topics being debated across the nation Thursday morning in USA TODAY: Taxes, Trade, Presidency. TODAY'S DEBATE - LUXURY TAX: USA TODAY'S OPINION: The boat industry is peddling a bellyful of bilge about the luxury tax, and Congress is buying it. Congress has swallowed the notion ... that the luxury tax is to blame for sinking yacht and other high-ticket sales. The luxury tax is about to be killed in the urban aid:tax bill being debated on the Senate floor this week. Congress should ... keep the luxury tax. The 10% tax was meant to make the rich share the pain of higher excise taxes on gas, cigarettes and beer that fell disproportionately on working people in the 1990 deficit reduction act. The tax applies to yachts costing more than $100,000; furs and jewelry over $10,000; private planes over $250,000; and cars over $30,000. Only amounts over those thresholds are taxed, so a $32,000 car would cost $32,200. The urban aid:tax bill would repeal all luxury taxes but the one on automobiles. This is no time to be subtracting any revenue from a deficit-burdened budget ... Repealing the luxury tax deprives federal coffers of $523 million over five years, and the tax bill makes up only $144 million of that by extending a diesel fuel tax to boaters. ... Since the tax applies to 1% of 500,000 boats sold yearly, something other than the tax is responsible for industry problems ... This is also no time to imply that the rich don't have to shoulder a fair share of the tax burden. ... Until Congress and the administration are brave enough to increase income taxes on the wealthy, the luxury tax will have to substitute for courage. OTHER VIEW: DANIEL J. MITCHELL is senior fellow at the Heritage Foundation: With the economy stagnant, the last thing America needs is more social engineering in the tax code. Every time politicians try to redistribute income through changing the tax code, they simply make things worse. The so-called luxury taxes included in 1990's disastrous budget deal ... did more damage to workers in boating and airline industries than to the net worth of the wealthy. Repealing the taxes would show workers' economic growth is more important than class-warfare politics. ... politicians must resist the temptation to use the tax system to micromanage the economy. ... The real problem with the tax bill is that it only tinkers at the edges. ... Repealing luxury taxes also is a no-lose proposition. These good provisions are offset by some tax hikes, unfortunately, including marginal tax-rate increases that take effect after 1995. To restore the vigorous economic growth America experienced in the 1980s, lawmakers need to be bolder. ... The best approach would be to slash personal income-tax rates across the board, dramatically simplify the tax code and end the tax bias against business investment. These reforms ... would create jobs. Tax-rate reductions under Presidents Kennedy and Reagan led to economic expansions; the same formula will work today. VOICES ACROSS THE NATION ON SUCCESS FOR THE FREE-TRADE AGREEMENT: HOUSTON, Texas, Evan S. Collins, 38, sales manager: My first impression is if it is just bare-bones competition, yes. In Houston, we are probably looking forward to it more than other places. It can't do anything but help us in Houston as long as it is an even playing field. MARLBOROUGH, Mass., Carolyn Golden Hebsgaard, 48, director: I'm not certain how it's going to improve our domestic economy. I'm most concerned with what's going on here and now and how it's going to make a difference for our urban plight. Most assuredly, it's a political move. ENDERLIN, N.D., Dean Torbenson, 24, farmer: I'd like to see some sort of protection because we're getting the short end of the stick. Canada has been trying to ship barley down here. Theirs is cheaper. We raise wheat, barley, corn and sunflowers. TUCSON, Ariz., Francine Rienstra, 45, advertising public relations exec.: Absolutely. I think it would bring more jobs, get more people working and get our attitude in the United States built up. If you have working people, you have happy people because they're feeling productive. TOPIC - PRESIDENCY: Democratic Presidential nominee Bill Clinton was interviewed by USA TODAY's editorial board. WHAT ARE THREE THINGS YOU'D LIKE TO ACCOMPLISH AS PRESIDENT?: This country has to change and what I would do as president is: First, I'd try to change our economic philosophy away from trickle-down economics toward an investment philosophy - both private and public investment to make America competitive again. Second, to address the enormous problem of spiraling health care costs and the crisis in health care in America. And third, to try to develop a world-class system of education, not just for children but also for adults. WHAT WOULD YOU DO IN YOUR FIRST DAYS AS PRESIDENT?: he first thing I would want to do is to put in positions of influence into the Cabinet and into the White House staff. The most gifted, creative people I could find. I would want an administration that looked like America in terms of race and gender and region. They would have to be committed to literally reinventing the government - making the government work again. ARE YOU WORKING ON A TRANSITION TEAM? We have done some work there, and I have tried to low-key it on purpose because I'm not presumptuous enough to believe this election is over. I don't think that the polls indicate necessarily the outcome of the election. What the polls indicate is the enormous yearning the American people have to feel hope and to believe that progress is possible. But I owe it to the American people to be ready if I do win. Issues & Debate Editor: Kate Coughlin. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM