Tuesday, September 27, 2005


Interesting idea to fund Katrina relief

And from an unlikley source to boot! Fox News!

President Lyndon Johnson in 1968 asked Congress to enact a one-year 10 percent income tax surcharge to help pay for the cost of the Vietnam War. Congress agreed and I remember going to the bottom line on my tax return for that year and adding an additional 10 percent. It seemed like the patriotic thing to do.

Congress could enact a one-time 10 percent tax surcharge (effective for tax year 2005) on all personal and corporate income taxes to help defray the cost of President Bush’s Katrina program. Current Congressional Budget Office projections for 2006 are that the Federal Government will collect $1,013 billion in individual tax revenues and $258 billion in corporate tax revenues for a total of $1,271 billion in total revenue. Ten percent of this would be $127 billion. Thus a 10 percent surcharge would pay for a little more than half of President Bush’s program.

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