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Sales Tax Criticism Is Way Off-Base

October 08, 1995

The negative opinion expressed by Lawrence Lindsey in "U.S. Sales Tax Would Have Undesirable Effects, Fed Member Says" (Sept. 7) is laughable.

He states, "It would place an enormous burden on state government." Change the tax percentage rate from 7.5 to 24.5--that's a burden?

He states that "it would be unfair to the poor and elderly." Hasn't he read the proposals that the poor and elderly would be exempted?

He states that "the sales tax would set off a buying spree in the months before it went into effect, then be followed by a bust as consumers dramatically cut buying and sought to rebuild their savings." He claims this would lead to a recession. I say a buying spree is always good for business. And how many hundreds of recessions have there been under the progressive income tax system? We've always had recessions for one reason or another, including the manipulation of the existing income tax by politicians and bureaucrats.

Mr. Lindsey is a member of the Federal Reserve Board--no doubt a wealthy man who can well afford the very best tax advice and planning and can take advantage of the tax shelters not available to most of us.

resist every effort that could eliminate their advantageous position.

DOUGLAS C. JOHNSTON

Santa Barbara

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