Tampa Bay Times
High incomes don’t need a break
The current Trump administration tax plan boldly proposes a tax reduction for business while also quietly reducing taxes for wealthy individuals. It would appear that the lowest wage earners would, under the same proposal, have their income tax increased from 10 to 12 percent.
The tax rate for income over $418,000 would be reduced from 39.6 percent to 35 percent. The taxed income, of course, would be after the multiple writeoffs such as interest payments on real estate, to name only one example. This would relieve the financial burden on such struggling executives as Jeff Immelt, former CEO of General Electric, whose salary, according to the Oct. 24 Wall Street Journal, exceeded $35 million in 2016. We do not know what Immelt’s final taxable income was after deductions, but excluding deductions and other income, the proposed reduction would yield a $1,610,000 savings for that one individual.
Paying exorbitant salaries to top executives is an accepted practice. I have no complaint regarding exorbitant salaries, as long as those salaries are taxed at a fair rate required to support the myriad federal expenses necessary to pay for the running of our great country. I fail to understand why these high-income individuals are favored by the Republican proposal when that party repeatedly claims to be working for the benefit of low- and mid-income people. Congressmen who vote for reducing income tax on the wealthiest citizens should not be re-elected to Washington while low-income citizens struggle to make a living.
Dave Hewitt, Parrish