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posted: 3/26/2014 12:01 AM

Close loopholes for state, fed revenue

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Long-needed revenue for federal and state public need should be obtained through adequate fair, thus progressive, taxes, meaning the ability to pay. Over 30 years, except for three, insufficient revenue has been mandated for running the nation.

Extension corporate loopholes, plus offshore havens, depreciation, speculation fees deprive government of revenue.

Government loses revenue when CEO pay is stock options, contributing less tax, hence revenue, than if pay were salaried and likewise when capital gains from stocks, derivatives of the top 1 percent richest is the big tax break, i.e., lower rate, than wages is skewed to the top one percent. It is not the top 20 percent, but just the top 1 percent where capital gains, inheritance gains tax breaks avoid much revenue.

States having personal income tax are more prosperous than no-income tax states and with more revenue, fund public services, infrastructure, safety and schools. Conservative Laffer's chosen nine states with state income tax average $2,000 more income yearly than no-income tax states, if correct for equivalent population.

Tax caps lack progressivity. Per capita income is higher, 8 percent income tax states than 5 percent in no-income tax states. State income tax is the only major state tax that generates revenue that keeps pace with the economy's growth. Low/middle class mainly supply regressive sales tax and flat tax revenue. Taxing retirement income harms, like pension costs.

For revenue, end capital gains tax break and corporate loopholes.

Bernice Russell

Crystal Lake

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