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Twenty Counterpoint: The Improbable Triumph of Tax Reform

1. Numbers are from Tables 1.2 and 2.1 in Individual Income Tax Returns: 1984, Statistics of Income Division, Internal Revenue Service Publication 1304 (Rev. 11-86). These are estimates based on IRS surveys. [BACK]

2. Ibid. The cutoff line here is adjusted gross incomes of $40,000 or more, hardly a definition of great wealth. See also John Witte, The Politics and Development of the Federal Income Tax (Madison: University of Wisconsin Press, 1985). [BACK]

3. Barrett, Gambling with History, p. 55. [BACK]

4. Eileen Shanahan, "Senate Tax Debate Opens to Raves ... Mostly," Congressional Quarterly Weekly Report, June 7, 1986, p. 1255-57. [BACK]

5. Paul R. McDaniel and Stanley S. Surrey, International Aspects of Tax Expenditures: A Comparative Study (Deventer, The Netherlands: Kluwer Law and Taxation Publishers, 1985); and McDaniel and Surrey, Tax Expenditure (Cavibridge, Mass.: Harvard University Press, 1985). For opposing views, see Aaron Wildavsky, "Keeping Kosher: The Epistemology of Tax Expenditures," Journal of Public Policy 5, no. 3 (1986), pp. 413-31. [BACK]

6. Joseph Pechman, Henry J. Aaron, Harvey Galper, George L. Perry, Alice M. Rivlin, and Charles L. Schultze, Economic Choices 1987 (Washington, D.C.: Brookings Institution, 1986). [BACK]

7. Jeffrey Birnbaum, "Tax Bill Saga: How a Pre-Emptive Political Step Became a Plan to Restructure Taxation in the U.S.," Wall Street Journal, June 4, 1986, p. 56. Bill Veeck, the famed owner of baseball teams (Cleveland Indians, St. Louis Browns, Chicago White Sox) appears to be the person who dreamed up depreciating players. [BACK]

8. Timothy Clark, "Strange Bedfellows," National Journal, February 2, 1985, pp. 251-56. [BACK]

9. Ibid. [BACK]

10. Birnbaum, "Tax Bill Saga." [BACK]

11. For Roberts's view of the world, see his The Supply-Side Revolution (Cambridge, Mass.: Harvard University Press, 1984). [BACK]

12. Clark, "Strange Bedfellows." [BACK]

13. Jeffrey H. Birnbaum, "Senate Opens Debate on Tax Overhaul; Bill's Passage Expected Within 3 Weeks," Wall Street Journal, June 5, 1986, p. 3. [BACK]

14. Pamela Fessler, "Laying the Groundwork: Special Interests Now Working on Next Year's Tax Legislation," Congressional Quarterly Weekly Report, April 28, 1984, p. 953. [BACK]

15. The Kemp-Kasten 24 percent included an exclusion for 20 percent of wages subject to social security tax. For a comparison of proposals, see Ronald Brownstein, "Wagering on Tax Reform," National Journal, February 2, 1985, pp. 245-50. [BACK]

16. Robert Hall and Alvin Rabushka, Low Tax, Flat Tax (New York: McGraw-Hill, 1983). [BACK]

17. Clark, "Strange Bedfellows"; Timothy B. Clark, "GOP platform edges closer to pledging no increase in taxes," National Journal, August 18, 1984, p. 1555. [BACK]

18. Text of 1984 Democratic party platform, Congressional Quarterly Weekly Report, July 21, 1984, pp. 1747-80. [BACK]

19. Nadine Cohodas, "Solidly Conservative Platform Ready for Adoption By GOP," Congressional Quarterly Weekly Report, August 18, 1984, p. 2023. [BACK]

20. Text of 1984 Republican party platform, Congressional Quarterly Weekly Report, August 25, 1984, pp. 2096-2117. [BACK]

21. Clark, "Strange Bedfellows." [BACK]

22. Birnbaum, "Tax Bill Saga," p. 56. [BACK]

23. Clark, "Strange Bedfellows." [BACK]

24. Birnbaum, "Tax Bill Saga." [BACK]

25. Timothy Clark, "Business Hit Hardest Under Treasury Tax Plan," National Journal, December 1, 1984, p. 2312. [BACK]

26. Ronald Brownstein, "Wagering on Tax Reform," National Journal, February 2, 1985, p. 245; Clark, "Business Hit Hardest"; Pamela Fessler, "Members Await Details of Tax Code Revision," Congressional Quarterly Weekly Report, February 16, 1985, pp. 301-2. [BACK]

27. Jeffrey H. Birnbaum and Alan S. Murray, Showdown at Gucci Gulch: Law makers, Lobbyists, and the Unlikely Triumph of Tax Reform (New York: Random House, 1987), pp. 49-50. [BACK]

28. Ibid., pp. 48-54. [BACK]

29. Steven Pressman, "President Scores for Oratory, but Skepticism Remains on Hill," Congressional Quarterly Weekly Report, February 9, 1985, pp. 274-75. [BACK]

30. "Schedule Uncertain for Tax Reform," Congressional Quarterly Weekly Report, February 2, 1985, p. 168; Birnbaum, "Tax Bill Saga." [BACK]

31. "A Call for a 'Second American Revolution': President Reagan's State of the Union Address," Congressional Quarterly Weekly Report, February 9, 1985, pp. 267-70. [BACK]

32. Elder Witt, "Arguments Set for February 19," Congressional Quarterly Weekly Report, February 16, 1985, pp. 307, 309. [BACK]

33. Ibid. [BACK]

34. Pamela Fessler, "Key is Presidential Backing," Congressional Quarterly Weekly Report, October 27, 1984, p. 2788. [BACK]

35. William Schneider, "Public Reluctant to Drop 'Unfair' Income Tax in Favor of Unknown Remedy," National Journal, December 29, 1984, p. 2462. Other polls show that the public either supports a flat, broader based lower rate tax compared to the present system or opposes it by small margins. Polls taken late in 1984 revealed widespread belief that the rich always escaped their fair share of taxes, that the ordinary person paid too much, and that the system was far too complicated. [BACK]

36. John Witte, Federal Income Tax. [BACK]

37. Pamela Fessler, "Successful Tax Code Overhaul Dependent on Reagan's Pitch," Congressional Quarterly Weekly Report, May 25, 1985, pp. 980-81. Ladd did warn that, because many people (48 percent according to an ABC/Washington Post poll in January 1985) had not heard of the Treasury Department's original reform proposal at the time that the public was being asked about hypothetical changes, opinion might alter dramatically. [BACK]

38. Text of Reagan press conference, Congressional Quarterly Weekly Report, January 12, 1985, pp. 88-91. [BACK]

39. Steven Pressman, "Familiar Themes, Programs: President Scores for Oratory, But Skepticism Remains on Hill," Congressional Quarterly Weekly Report, February 9, 1985, pp. 273, 275, 277. [BACK]

40. Pamela Fessler, "Rostenkowski Makes Pitch for Tax Overhaul," Congressional Quarterly Weekly Report, March 2, 1985, p. 399. [BACK]

41. Pamela Fessler, "Tax Overhaulers' Next Chore is Generating Public Support," Congressional Quarterly Weekly Report, March 30, 1985, p. 604. [BACK]

42. Susan S. Rasky, "Reagan Postpones Tax Push to Focus on Deficit," New York Times, July 5, 1985, p. D6. [BACK]

43. Timothy B. Clark, "Real Estate Industry, Other Corporate Losers Open Fire on Tax Proposals," National Journal, December 8, 1984, p. 2333. [BACK]

44. Pamela Fessler, "Senior Staff Changes at Tax-Writing Committees," Congressional Quarterly Weekly Report, January 19, 1985, p. 111; Pamela Fessler, "Fight to Reap the Political Advantage: Successful Tax Code Overhaul Dependent on Reagan's Pitch," Congressional Quarterly Weekly Report, May 25, 1985, pp. 980-81. [BACK]

45. Fessler, "Successful Tax Code Overhaul Dependent on Reagan's Pitch." [BACK]

46. Elizabeth Wehr, "Rostenkowski: A Firm Grip on Ways and Means," Congressional Quarterly Weekly Report, July 6, 1985, p. 1317. [BACK]

47. Ronald Grover, "Why Rostenkowski and Reagan are Playing Footsie," Business Week, September 16, 1985, p. 31. [BACK]

48. "Reagan's May 28 Address on Tax Reform," Congressional Quarterly Weekly Report, June 1, 1985, p. 1074. [BACK]

49. Birnbaum and Murray, Showdown at Gucci Gulch, p. 99. [BACK]

50. Pamela Fessler, "Tax Bill Markup Schedule Seen as Ambitious," Congressional Quarterly Weekly Report, September 14, 1985, pp. 1796-97. [BACK]

51. Richard E. Cohen, "Despite Misgivings, Finance Committee May Be Forced to Tackle Tax Reform Bill," National Journal, October 19, 1985, p. 2360. [BACK]

52. Pamela Fessler, "Members Find Little Support for 'Reform': Tax Panel Postpones Markup, Still Hopes to Report This fall," Congressional Quarterly Weekly Report, September 7, 1985, pp. 1744-45. [BACK]

53. Pamela Fessler, "Panel Votes Breaks for Banks, Charitable Gifts," Congressional Quarterly Weekly Report, October 19, 1985, p. 2102. [BACK]

54. Ibid., p. 2103. [BACK]

55. We should point out that the amendment easily could be argued to have preserved the financial integrity of banks. See Birnbaum and Murray, Showdown at Gucci Gulch, pp. 127-28. [BACK]

56. Ibid., p. 127. [BACK]

57. Ibid., p. 126. [BACK]

58. Ibid., pp. 126-35. [BACK]

59. Pamela Fessler, "State, Local Tax Deduction Could Be Retained," Congressional Quarterly Weekly Report, October 26, 1985, pp. 2140-41; Fessler, "Markup Nearly Half Finished: Panel Confident of Reporting Tax-Overhaul Measure This Fall," Congressional Quarterly Weekly Report, November 2, 1985, pp. 2197-99. [BACK]

60. Charles P. Alexander, "Trying to Stage a Tax-Reform Rally," Time, November 11, 1985, p. 68. [BACK]

61. Pamela Fessler, "Ways and Means Finishes Tax Code Overhaul," Congressional Quarterly Weekly Report, November 30, 1985, pp. 2483, 2485. [BACK]

62. Pamela Fessler, "Reagan Criticizes 'Waterings Down': Tax Code Rewrite Continues; Panel OKs Pension Revisions," November 9, 1985, pp. 2276-77; Fessler, "Tax Overhaul Measure Faces an Uncertain Future in the House," November 23, 1985, p. 2417; Fessler, "Success of Tax Bill in Doubt Despite Mild Reagan Support," December 7, 1985, p. 2546; all in Congressional Quarterly Weekly Report. [BACK]

63. "At a Glance—A Weekly Checklist of Major Issues," National Journal, December 7, 1985, p. 2827. [BACK]

64. Pamela Fessler, "GOP Defeats Attempt to Consider Tax Bill," Congressional Quarterly Weekly Report, December 14, 1985, pp. 2613-16. [BACK]

65. Pamela Fessler, "GOP Is Opposed, Democrats Are Split: Success for Tax Bill in Doubt Despite Mild Reagan Support," Congressional Quarterly Weekly Report, December 7, 1985, pp. 2543-46. [BACK]

66. Birnbaum and Murray, Showdown at Gucci Gulch, p. 160. [BACK]

67. Fessler, "GOP Defeats Attempt to Consider Tax Bill"; Birnbaum and Murray, Showdown at Gucci Gulch, pp. 164-65. [BACK]

68. Ibid. [BACK]

69. Pamela Fessler, "House Reverses Self, Passes Major Tax Overhaul," Congressional Quarterly Weekly Report, December 21, 1985, p. 2705. [BACK]

70. "At a Glance—A Weekly Checklist of Major Issues," National Journal, December 21, 1985, p. 2935. [BACK]

71. Fessler, "House Reverses Self." [BACK]

72. Dick Kirschten, "Tax Reform Dodges Another Bullet, But May Have Winged the GOP," National Journal, December 21, 1985, pp. 2918-19. [BACK]

73. Ibid. [BACK]

74. Pamela Fessler, "Finance Panel Moves Toward Tax Bill Markup," Congressional Quarterly Weekly Report, March 8, 1986, p. 545; and Stephen Gettinger, "Measure's Savings Now $18.1 Billion: Deficit-Cutting Bill Amended, But Future Action is Uncertain," Congressional Quarterly Weekly Report, March 8, 1986, pp. 544-45. [BACK]

75. Elizabeth Wehr, "Budget Puts Congress in a Combative Mood," Congressional Quarterly Weekly Report, February 8, 1986, p. 219. [BACK]

76. David Rosenbaum, "Senate Puts Budget Effort Ahead of Tax Revision," New York Times, April 11, 1986, p. A1. [BACK]

77. David Rosenbaum, "The Senate Seems to be Going Along to Get Along," New York Times, February 2, 1986, p. A7. [BACK]

78. Pamela Fessler, "Finance Markup Completion Target Is May 1," Congressional Quarterly Weekly Report, January 25, 1986, pp. 142-44; Fessler, "Finance Panel Moves Toward Tax Bill Markup." [BACK]

79. Rosenbaum, "Senate Seems to be Going Along to Get Along." [BACK]

80. David Rosenbaum, "Panel Set to Defeat Bond Tax: Packwood's Plan Opposed by Senators," New York Times, March 21, 1986, pp. D1, D5. [BACK]

81. Timothy Clark, "Divided They Stand," National Journal, April 19, 1986, pp. 929-39. [BACK]

82. Pamela Fessler, "Finance Panel Suspends Markup of Tax Bill," Congressional Quarterly Weekly Report, April 19, 1986, p. 840. [BACK]

83. Ibid. [BACK]

84. Timothy Clark, "Forget Simplicity: Let's Make a Deal," National Journal, April 26, 1986, p. 1008. [BACK]

85. Jeffrey Birnbaum, "Packwood's Route to Triumph," Wall Street Journal, May 9, 1986, p. 54. [BACK]

86. Pamela Fessler, "Finance Committee Studies Two-Rate Tax Plan," Congressional Quarterly Weekly Report, April 26, 1986, p. 900. [BACK]

87. Daniel P. Moynihan, "Special Report" (newsletter to constituents), June 1986. [BACK]

88. Ibid. [BACK]

89. Jacqueline Calmes, "Bob Packwood: A Tax Reform Convert," Congressional Quarterly Weekly Report, May 10, 1986, p. 1011. [BACK]

90. Ibid. [BACK]

91. Birnbaum and Murray, Showdown at Gucci Gulch, p. 205. [BACK]

92. Ibid., p. 207. [BACK]

93. Packwood speech, Congressional Record, June 4, 1986, p. S6719. [BACK]

94. Moynihan, "Special Report." [BACK]

95. Packwood speech, Congressional Record, June 4, 1986, p. S6719. See also Robert D. Hershey, Jr., "Tax Bill's Key Numbers Man," New York Times, January 3, 1986, p. D1. [BACK]

96. Moynihan, "Special Report." [BACK]

97. Birnbaum, "Packwood's Route to Triumph." [BACK]

98. Packwood speech, Congressional Record, June 4, 1986, p. S6719. [BACK]

99. Moynihan, "Special Report." [BACK]

100. See Birnbaum and Murray, Showdown at Gucci Gulch, p. 219. [BACK]

101. Pamela Fessler, "Packwood Promises New Plan May 5: Tax Bill Consensus Claimed, But Some Members Skeptical," Congressional Quarterly Weekly Report, May 3, 1986, pp. 962-63. [BACK]

102. Calmes, "Bob Packwood." [BACK]

103. Eileen Shanahan, "Finance Panel OKs Radical Tax Overhaul Bill," Congressional Quarterly Weekly Report, May 10, 1986, p. 1007. [BACK]

104. Fessler, "Finance Committee Studies Two-Rate Plan." [BACK]

105. Birnbaum and Murray, Showdown at Gucci Gulch, pp. 227-28. [BACK]

106. Ibid., p. 230. [BACK]

107. Ibid., p. 129. [BACK]

108. Moynihan, "Special Report." [BACK]

109. Packwood speech, Congressional Record, June 4, 1986, p. 3. [BACK]

110. Jeffrey Birnbaum, "Radical Tax Overhaul Now Seems Probable," Wall Street Journal, May 8, 1986, pp. 1, 3. [BACK]

111. Ibid. [BACK]

112. Ibid. [BACK]

113. Elizabeth Wehr, "Tax Bill Could Face Procedural Hurdles on Senate Floor," p. 1013; Eileen Shanahan, "Finance Panel OKs Radical Tax Overhaul Bill," pp. 102-13, 1007-10. See also chart, "Evolution of Proposals to Overhaul the Tax Code," Congressional Quarterly Weekly Report, August 23, 1986, p. 1948. [BACK]

114. Eileen Shanahan, "Tax Debate Keys on Economic Consequences," Congressional Quarterly Weekly Report, May 17, 1986, pp. 1093, 1095. [BACK]

115. Timothy Clark and Richard Cohen, "Tax Reform Locomotive," National Journal, May 31, 1986, p. 1301. [BACK]

116. Jeffrey Schwartz, "NY Leaders Split on Tax Bill," New York Times, May 7, 1986, pp. 32, 37. [BACK]

117. David Rosenbaum, "A Linking of Tax Reform to Budget," New York Times, May 13, 1986, pp. D1, D11. [BACK]

118. Jeffrey H. Birnbaum, "Dole Asserts Tax Bill Is 'Unstoppable,' Will Be on Reagan's Desk by Labor Day," Wall Street Journal, June 3, 1986, p. 3. [BACK]

119. Eileen Shanahan, "Senate Nears Tax Bill Passage," Congresssional Quarterly Weekly Report, June 14, 1986, p. 1313. [BACK]

120. GRH said that any amendment to legislation on the floor of the Senate that would raise the deficit would be subject to a point of order. Because there was no budget resolution, there was no "deficit" number to be increased, so the provision was not technically in force. But the norm, far more important than the formal procedure, remained. [BACK]

121. Jeffrey H. Birnbaum, "Senate, Leaving Tax Plan Intact, Rejects Proposal to Retain Sales-Tax Deduction," Wall Street Journal, June 13, 1986, pp. 3, 5. [BACK]

122. Timothy B. Clark, "Bill's Biggest Boom is to Working Poor," National Journal, July 12, 1986, p. 1730. [BACK]

123. It "looks like a rich man's out," Speaker O'Neill complained. "It's a mighty loophole for the wealthy of America" (Birnbaum, "Senate, Leaving Tax Plan Intact"). [BACK]

124. Shanahan, "Senate Nears Tax Bill Passage"; Timothy B. Clark, "Taxation—Resolving the Differences," National Journal, July 5, 1986, pp. 1658-65. [BACK]

125. Shanahan, "Senate Nears Tax Bill Passage." [BACK]

126. Here, as elsewhere in matters not central to our story, we are barely able to hint at the complexity of the considerations. [BACK]

127. Birnbaum, "Senate Opens Debate on Tax Overhaul." [BACK]

128. David E. Rosenbaum, "Senate Rejects a Tax Amendment to Benefit Middle-Income People," New York Times, June 19, 1986, pp. A1, B8. [BACK]

129. Birnbaum and Murray, Showdown at Gucci Gulch, p. 246. [BACK]

130. Eileen Shanahan, "Christmas Presents Beginning to Pile Up: Panel's Tax Bill Largely Intact As Senate Nears Final Passage," Congressional Quarterly Weekly Report, June 21, 1986, pp. 1377-79; Birnbaum and Murray, Showdown at Gucci Gulch, p. 251. [BACK]

131. Timothy Clark and Richard E. Cohen, "Resolving the Differences," National Journal, July 5, 1986, p. 1662. [BACK]

132. Eileen Shanahan, "Tax Reform Warmup: Harmony on Some Points," Congressional Quarterly Weekly Report, July 12, 1986, pp. 1566-68. [BACK]

133. Birnbaum and Murray, Showdown at Gucci Gulch, p. 258. [BACK]

134. Ibid., p. 259. [BACK]

135. Shanahan, "Tax Reform Warmup"; David Rosenbaum, "A Tentative Tax-Rate Accord," New York Times, July 26, 1986, p. 35. [BACK]

136. Jeffrey H. Birnbaum, "Senate Tax Conferees React Negatively To House Plan to Lift Corporate Taxes," Wall Street Journal, August 1, 1986, p. 3. [BACK]

137. Eileen Shanahan, "Corporate Hit Could Sidetrack Tax Conference," Congressional Quarterly Weekly Report, November 2, 1986, p. 1228. [BACK]

138. David E. Rosenbaum, "House Team Sets Strategies for Bargaining," New York Times, July 31, 1986, p. D1. [BACK]

139. "Tax Reform, Last Lap or Last Legs," editorial, New York Times, August 8, 1986, p. A26. [BACK]

140. Birnbaum and Murray, Showdown at Gucci Gulch, pp. 264-67. [BACK]

141. Jeffrey H. Birnbaum, "Tax Conferees Reach Impasse on Overhaul," Wall Street Journal, August 13, 1986, pp. 3, 14. [BACK]

142. David Rosenbaum, "Tax Conferees Divided: Chairman Seeks Accord," New York Times, August 13, 1986, pp. D1, D6. [BACK]

143. David Rosenbaum, "Chairmen Hit a Snag on Tax Bill: Face Shortfall of $17 Billion Over 5 Years," New York Times, August 15, 1986, pp. D1, D2. [BACK]

144. Birnbaum and Murray, Showdown at Gucci Gulch, pp. 273-76. [BACK]

145. David Rosenbaum, "Accord on Taxes Has Been Reached, Packwood Says," New York Times, August 16, 1986, p. 1. [BACK]

146. Tom Redburn and Michael Wines, "Tax Accord Achieved, Top Conferee Declares," Los Angeles Times, August 16, 1986, pp. 1, 22. [BACK]

147. Rosenbaum, "Accord on Taxes Has Been Reached"; Redburn and Wines, "Tax Accord Achieved." [BACK]

148. Robin Toner, "Behind the Scenes in Tax Bill Drama," New York Times, August 16, 1986, pp. 35, 37. [BACK]

149. Jeffrey H. Birnbaum, "What's Next? In Turning to Deficit, Congress May Tinker With the Taxes Again," Wall Street Journal, August 18, 1986, pp. 1, 10. [BACK]

150. Ibid. [BACK]

151. E. J. Dionne, Jr., "Political Memo: For Richer, for Poorer, in Taxes and Ideology," New York Times, August 22, 1986, p. A10. [BACK]

152. Robin Toner, "Elation and Nostalgia on Capitol Hill," New York Times, August 18, 1986, p. B10. [BACK]

153. Peter J. Kilborn, "A Reagan-Style Bill," New York Times, August 18, 1986, p. A1. [BACK]

154. Albert Scardino, "Realty Woes Seen in Tax Bill," New York Times, August 26, 1986, p. D5. [BACK]

155. Leslie Maitland Werner, "Educators See Great Harm; Large Cut in Gifts Feared," New York Times, August 21, 1986, p. D15. [BACK]

156. Linda Greenhouse, "Danforth Promises Determined Battle," New York Times, August 20, 1986, p. D10. [BACK]

157. "U.S. Tax Bill May Force New York To Cut Housing and Public Works," Bruce Lambert, "Bond Costs Likely to Rise," and Eric N. Berg, "Entrepreneur Curb Seen," all in New York Times, August 20, 1986, p. 1. [BACK]

158. Jeffrey H. Birnbaum, "Tax-Overhaul Vote Represents Moment of Truth for GOP as It Tries to Shed Big Business Image," Wall Street Journal, September 12, 1986, p. 50; Eileen Shanahan, "Despite Skeptics, House Eases Way for Tax Bill," Congressional Quarterly Weekly Report, September 13, 1986, p. 2118. [BACK]

159. Eileen Shanahan, "Time and Numbers Work Against It: Discontent Grows Over Tax Bill as House Prepares for Final Vote," Congressional Quarterly Weekly Report, September 20, 1986, p. 2183. [BACK]

160. Douglas Harbrecht, "350 exemptions in final tax accord," San Francisco Examiner, September 19, 1986, p. A3. [BACK]

161. David Rosenbaum, "A G.O.P. Effort to Block Tax Bill Is Frustrated," New York Times, September 25, 1986, p. D1. [BACK]

162. Thomas Oliphant, "House passes tax revision bill," Boston Globe, September 26, 1986, pp. 1, 13. [BACK]

163. Ibid. [BACK]

164. Ann Swardson, "Senate OKs Tax Overhaul," Oakland Tribune, September 28, 1986, pp. 1, 8. [BACK]

165. National Journal, November 22, 1986, p. 2854. [BACK]

166. Swardson, "Senate OKs Tax Overhaul." [BACK]

167. Stephen V. Roberts, "How Tax Bill Breezed Past, Despite Wide Doubts," New York Times, September 26, 1986, p. A20. [BACK]

168. Eileen Shanahan, "It May Be Tax Reform, but Will It Last?" Congressional Quarterly Weekly Report, August 30, 1986, p. 2053. [BACK]

169. Julie Kostervitz, "Broad Coalition Prepares to Do Battle on Taxing Employee Fringe Benefits," National Journal, May 4, 1985, p. 956. [BACK]

170. Janet Hook, "Issue of Fringe-Benefit Taxes Only Partly Defused by Reagan," Congressional Quarterly Weekly Report, June 8, 1985, pp. 1099-1101. [BACK]

171. Pamela Fessler and Steven Pressman, "Tax Overhaul: The Crucial Lobby Fight of 1985," Congressional Quarterly Weekly Report, March 9, 1985, p. 450. [BACK]

172. Timothy Clark, "At Grass Roots, Not Much Groundswell of Support for Reagan's Tax Reform," National Journal, July 27, 1985, p. 1738. [BACK]

173. Nadine Cohodas, "Battle Looms Over State, Local Tax Issue," Congressional Quarterly Weekly Report, June 1, 1985, p. 1041. [BACK]

174. Robert Rothman, "Reagan Critics Praise Tax Cut for the Poor," Congressional Quarterly Weekly Report, July 6, 1985, p. 1323; Joann S. Lublin, "Amid Debates Over Tax Preferences for the Rich, Lawmakers Agree on Sweeping Relief for the Poor," Wall Street Journal, May 23, 1986, p. 40. [BACK]

175. A word of caution is in order. Most people of modest means pay not income but social security taxes. The percentage reduction in income tax under the tax reform passed by the Senate is substantially but by no means entirely reduced when combined into a grand total with social security. Thus, those who earn between $10,000 and $20,000 annually see their reduction lowered from 20.1 percent on income tax alone to 12.9 percent when social security is figured in. However, when the earned income tax credit is added in, many working poor will receive rebates that they can subtract from their social security payments. [BACK]

176. Timothy Clark, "How to Succeed Against Business," National Journal, May 3, 1986, p. 1059. [BACK]

177. Jeffrey H. Birnbaum, "Reborn Bill: Radical Tax Overhaul Now Seems Probable As Senate Panel Acts," Wall Street Journal, May 8, 1986, pp. 1, 22. [BACK]

178. Fessler and Pressman, "Tax Overhaul: The Crucial Lobby Fight of 1985." [BACK]

179. Inside the Administration, May 29, 1986. This weekly newspaper is an Inside Washington Publication. [BACK]

180. Robert Rothman, "Construction Down, Cost Up: Real Estate Industry Predicts Dire Harm From Reagan Plan," Congressional Quarterly Weekly Report, August 31, 1985, pp. 1707-10. [BACK]

181. Nadine Cohodas, "Other Justice-Related Spending Up Slightly; Law Enforcement Spending Remains Level," Congressional Quarterly Weekly Report, February 2, 1985, p. 250. [BACK]

182. Ann Cooper, "New Business Coalition Wants to Keep the Ball Rolling on Reagan's Tax Reform," National Journal, July 20, 1985, pp. 1675-79. [BACK]

183. Jeffrey Birnbaum, "Tax Bill Saga: How a Pre-Emptive Political Step Became a Plan to Restructure Taxation in the U.S.," Wall Street Journal, June 4, 1986, p. 56. [BACK]

184. Brooks Jackson and Monica Langley, "Lobbyists Take Aim at Conference Panel To Get Favors in Final Tax Overhaul Bill," Wall Street Journal, June 25, 1986, p. 24. [BACK]

185. Eileen Shanahan, "Tax Debate Keys on Economic Consequences," Congressional Quarterly Weekly Report, May 17, 1986, p. 1095. [BACK]


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