DGS49
Diamond Member
The Covid Pandemic and its associated shutdowns have created a regrettable new (and temporary) multi-class situation in our economy, and with Congress frantically trying to spend money with reckless abandon, justified by this largely-self-inflicted crisis, they are ignoring both the situation and the solutions that are obvious.
The multi-class situation is first manifested by the fact that MOST Americans are NOT ECONOMICALLY HARMED by the current travails. They are still drawing their full salaries, and most are saving tons of money that they would normally be spending on commuting, eating lunches at work, keeping the wardrobe fresh, not to mention vacations, travel, eating out, recreational expenses and so on. Financially, for Tier #1, this is a WINDFALL! Retired people as well (like me) are actually benefiting from the current crisis.
Tier #2 is all of those people who continuing to work, but have to work the same way they did before, and possibly under enhanced danger of contracting the deadly disease. For Tier #2, it's financially pretty much business as usual.
Tier #3 is all of those people whose jobs have been destroyed or badly impacted by the pandemic and shutdowns. People who work in entertainment, dining (in some areas), travel, etc. These people are on long-term unemployment, or have had their earnings decimated. These people are - or should be - the primary beneficiaries of the relief packages.
The current situation is a classic example of an economic calamity that can be addressed with a TEMPORARY SURTAX. The people who are not harmed should be forced to pay additional FIT to at least partially offset the extraordinary costs of the pandemic/shutdowns. The Surtax should be graduated from 5-15% on incomes over a rational threshold depending on family size, and should have a sunset provision that sets for specific criteria for the end of the Surtax.
The Federal supplement to UEC should also be made FIT-Free...no Federal income tax on that supplemental compensation.
We all know that the news pages of the near future will be filled with stories of astounding levels of fraud, waste, and abuse in connection with the trillions of dollars that Congress is spewing out trying to buy votes in '22 and '24. Could they not at least pretend to do something prudent at this time?
The multi-class situation is first manifested by the fact that MOST Americans are NOT ECONOMICALLY HARMED by the current travails. They are still drawing their full salaries, and most are saving tons of money that they would normally be spending on commuting, eating lunches at work, keeping the wardrobe fresh, not to mention vacations, travel, eating out, recreational expenses and so on. Financially, for Tier #1, this is a WINDFALL! Retired people as well (like me) are actually benefiting from the current crisis.
Tier #2 is all of those people who continuing to work, but have to work the same way they did before, and possibly under enhanced danger of contracting the deadly disease. For Tier #2, it's financially pretty much business as usual.
Tier #3 is all of those people whose jobs have been destroyed or badly impacted by the pandemic and shutdowns. People who work in entertainment, dining (in some areas), travel, etc. These people are on long-term unemployment, or have had their earnings decimated. These people are - or should be - the primary beneficiaries of the relief packages.
The current situation is a classic example of an economic calamity that can be addressed with a TEMPORARY SURTAX. The people who are not harmed should be forced to pay additional FIT to at least partially offset the extraordinary costs of the pandemic/shutdowns. The Surtax should be graduated from 5-15% on incomes over a rational threshold depending on family size, and should have a sunset provision that sets for specific criteria for the end of the Surtax.
The Federal supplement to UEC should also be made FIT-Free...no Federal income tax on that supplemental compensation.
We all know that the news pages of the near future will be filled with stories of astounding levels of fraud, waste, and abuse in connection with the trillions of dollars that Congress is spewing out trying to buy votes in '22 and '24. Could they not at least pretend to do something prudent at this time?
