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...Franklin respond? She started by committing what might have been political suicide. She cut 1,000 jobs from the city payroll and got the city council to approve a 1% sales-tax hike and a 50% bump to property taxes. To prove she could take it as well as dish it out, she laid off half her staff and cut her own salary...

Author: /time Magazine | Title: Restorer of Faith | 4/18/2005 | See Source »

...pushed for an incentive-based compensation system for public employees, which voters approved in 2003. And in his biggest score, he won approval for a $4.7 billion mass-transit plan, which involved persuading voters, along with about a dozen mayors in seven regional counties, to back a sales-tax hike...

Author: /time Magazine | Title: Able Amateur | 4/18/2005 | See Source »

Everyone knows that the rich get richer. But not every day does the Government disclose how it happens. Last week the Treasury Department issued a report showing that in 1983 some 55,000 taxpayers with incomes exceeding $250,000 paid a lower percentage of their income in federal taxes than the average middle-income family of four. At least 1,900 of these high earners paid no tax...

Author: /time Magazine | Title: High Earners, Low Payers | 4/18/2005 | See Source »

Perhaps even more striking, 3,170 taxpayers who earned more than $1 million in 1983 paid virtually no tax at all. In an accountant's terms, the Treasury study restates the rich-are-different theory: "These high-income, low-tax returns look very different from ... those of typical upper-middle-income taxpayers...

Author: /time Magazine | Title: High Earners, Low Payers | 4/18/2005 | See Source »

...study is sure to become a tool in the hands of politicians wrangling over plans to reform the federal tax system. "If anyone had any doubt about the unfairness of our present tax code," said Democratic Congressman J.J. Pickle of Texas, "these figures should convince them." Pickle, who requested the report, is advocating a minimum-tax provision on personal income. The study, said a White House spokesman, "shows that fat cats pay little or no money. It's a perfect example of why the President wants tax reform." But tax-reform experts point out that many of the major loopholes...

Author: /time Magazine | Title: High Earners, Low Payers | 4/18/2005 | See Source »

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