December 15, 2010
E,fe Çortlanî» (Obacrucr
Page 17
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May 1,2010
What’s All the Fuss about Top Tax Rates
Increase would
be paltry in
historic terms
K enneth L ewis
The national con
versation on our fis
cal health for the past
few months has been
about whether to ex
tend the B ush-era
tax cuts for households with in
comes over $250,000, or to al
low them to expire on Dec. 31.
To my amazement, lost in all this
controversy and discussion has
been any mention of what this
would really mean for high-in-
come people in the context of
historical tax rates.
During the 1950s this country
was flourishing economically and
adding new jobs that moved mil
lions of people out of poverty
and into the middle class. What
kind of tax policy was in place
during this period, those years
after W orld W ar II when the
Baby Boomers were growing
up?
What was the top marginal
tax rate during all eight years of
the Eisenhower Administration?
91 percent! The increase pro
by
posed for today’s rates seems
paltry, and the top rate seems
very low, in fact too low, and
incongruent with the needs of
the country for investment right
now in education, health and in
frastructure.
This comparison is also
true when looking broadly
over the mid-century; dur
ing the years from 1935 to
1980 the marginal rates were
never below 70 percent.
One can only wonder what
the big fuss is all about.
Right now people pay income
taxes on a sliding scale between
10 and 35 percent. If the Bush-
era tax cuts expire, the rates
would return to between 15 and
39.6 percent. Less than one per
cent of taxpayers now pay the
35 percent (according to the Wall
Street Journal) and less than four
percent pay 33 percent. If the
tax cuts are allowed to expire,
the top tax rate of 39.6 percent
would only apply to those whose
income, adjusted for inflation,
exceeds $363,000 per person.
So in reality, the big contro
versy over the extension o f tax
cuts boils down to a mere 4.6
percent for those making over
$363,000! And remember, they
pay that extra amount only on
incomes over $363,000, not their
entire income. Based on the ar
guments and emotional force
fulness of those who want all tax
cuts extended, one would think
that the rates we are talking
about are historically high rates.
Top rates of 35 and 39.4 percent
aren’t even close to historic
highs.
At a time when reducing the
deficit is a main concern of both
the public and of policy makers,
it seems incredible that there is
even any discussion about this.
Letting the tax cuts expire for
the top two to four percent of
high earners will reduce the defi
cit by over $700 billion. How can
we not do this?
The argument that lower tax
rates leads to increased em ploy
ment is belied by the experience
during the Bush Administration.
The most massive tax reduc
tions in U.S. history occurred
during those eight years, and the
increase in employment during
those years was the lowest in
U.S. recorded history. Lower
taxes did not lead to increased
employment.
I have benefited enormously
from the infrastructure that strong
federal, state, and local govern
ments provide. As a business
man I have used more than my
fair share of these public institu
tions and therefore, I want to
pay my fair share. T hat’s why
I’m asking Congress to raise my
taxes!
There is no valid reason to
continue these historically low
tax rates for those making more
than $250,000 or more than
$363,000 during a period of eco
nomic stress. This country is in
trouble and those of us who have
benefitted the most need to step
up and pay our fair share. The
small rate increase will decrease
the deficit by over $700 billion
and have no appreciable adverse
impact on employment. In fact, I
would argue it would stimulate
job creation if Congress were to
invest in this country again. The
House has rejected letting the
wealthy off the hook for their
fair share. The Senate should
act now, do the right thing - and
also reject the compromise.
Kenneth Lewis is form er
president o f Lasco Shipping
Co. o f Portland and o f the
Port o f Portland Commission.
He is also form er national
chairman o f the I Have a
Dream Foundation and a mem
ber o f Wealth for the Common
Good.
All Students Deserve Up-to-date Schools
Supporting the
modernization bond
T amala N ewsome and L a S hawn L ee
As school prin
cipals in north and
n o rth e a st P o rt
land, we see ev
ery day the posi
tive effects that
our schools have
on students and families — and on our
immediate community, which utilizes our
buildings as neighborhood centers. But it
takes a much greater effort to be effective
and to serve our community well at one of
our schools. Why? Its physical condition.
Only four miles separate our two schools,
but it may as well be an ocean.
Built in 2006, Rosa Parks Elementary
School represents a new way: of designing
learning spaces, of defining “children first’’
by addressing the needs of the “whole
child;” of building partnerships, of linking a
public school to its community and a com
by
munity to a school. Rather than focusing on
space, the district focused on learning and
asked the building to respond.
The Rosa Parks building features flex
ible learning space to support a variety of
student groupings and individualized
instruction. There is access to tech
nology throughout the school, as well
as a dedicated technology lab to
support the requirements of 21st
century learning. Extensive natural
light brightens the rooms, reduces
lighting-related electricity consumption and
improves learning.
At Faubion PK-8 School, built in 1950,
teachers do a wonderful job utilizing the
resources available to meet the academic
needs of students, but every school day,
staff members and students struggle with
noise, poor lighting, mildew, lack of fresh
air, hot or cold temperature, overcrowded
classrooms, limited technology and inad
equate security. For many years, we have
used everything from superglue to duct
tape just to keep our school up and running,
but the building continues to deteriorate.
The adverse conditions at Faubion nega
tively affect the academic achievement of
our students. Our students are cold in the
winter, hot in the summer and wet during
the rainy season. W hat’s more, the building
simply is too small for our growing popula
tion. Next year we will use part of the
library, cafeteria stage, and principal’s of
fice as mini classrooms for next school
year.
Our schools are places where children
can grow to their full potential, now and for
generations to come. All of our students
deserve the opportunity to learn, develop
and grow in a safe and inspiring environ
ment such as Rosa Parks. The school
modernization bond that the Portland School
Board is considering for placement on the
May ballot is a step toward this achieving
that goal.
We would like to leave you with these
final thoughts: If not now, when? If not
here, where? And if not our children, whose?
Tamala Newsome is the principal Rosa
Parks School, and LaShawn Lee is prin
cipal o f Faubion School.
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