When the president says there will be no new taxes, it helps mainly the wealthy: the 80 percent with incomes over 100,000, the top 5 percent wealthiest.

He would cut the tax on capital gains receipts (stocks, bonds, gold, real estate-like buildings), much of it from stock market speculation or leveraged buyouts. It favors the wealthy 5 percent at the expense of the working majority, who must defray the lost income tax revenue, or about a 20 percent capital gains reduction.

Bush claims reducing the tax on gains (dividends, etc.) might encourage productive investment in business. Only a sound economy induces manufacturing or service investment, especially not with low taxing on overseas investing.

In 1982 the capital gains tax was cut, but revenue from the sales of stocks, etc. did not increase real investment or government revenue as claimed. Again the president says cutting the capital gains tax will add government revenue, but others project a $10 billion loss.

To pay our $120 billion deficit, income tax including capital gains should be increased on those most able to pay, the richest 5 percent—rather than on the majority.

Thus to favor the rich, the 5 percent owning 80 percent, the majority of middle class wage earners will get new taxes to balance a 20 percent tax cut for the 5 percent wealthiest and further increase paying for increased weapons and foreign dictators.

Despite a capital gains cut and no new taxes (“read my lips”) applying to the rich but not to the working majority, Bush does not plan A SOCIAL SECURITY cut, even when the social security trust fund has a SURPLUS of payments (not derived from income tax). This surplus in the social security trust fund (working class money) should be just for the intended wage earners, and not for paying for militarism. Pursue Senator Moynihans’ social security 15 percent “tax” cut and stop tax cuts for the wealthy.

While Bush cuts social services like education and clean water treatment, he seeks tax cuts for the richest five percent.

Bernice Russell

DeKalb Resident