Because presidential candidate George Bush has planned his tax cut proposal in terms of percentages rather than dollar amounts, he has left himself open to candidate Al Gore’s charge that most of the tax relief money is going to the rich.
For example, 10 percent of a $1 million annual income is a far larger dollar amount than 20 percent of, say, $40,000. Bush can respond that his plan gives a larger percent of income to the poor than to the rich.
Many of us have faced this dilemma at our places of employment.
Everybody is given the same percentage raise. That seems fair, doesn’t it? But under this system the CEO gets a raise larger than the entire salary of some of his employees. That is why union negotiators often demand that raises be given out in dollar amounts across the board. Done on a percentage basis, the gap between the rich and the poor grows greater and greater–and that is not fair.
When I buy a loaf of bread, pay off my mortgage or settle a doctor’s bill, nobody demands a percentage amount. They charge the same price across the board.
