Sounding Off:

I read and reread the Forum offering by Jamshed H. Dastur (Sounding Off: “America weaker with loss of the middle class,” May 5). I was attempting to deduce whether the eminently qualified Dastur’s commentary reflected his actual beliefs, or if he was torturing the “facts” unmercifully in an effort to support his slanted views. I’ll let the jury of public opinion decide on that one. In the meantime, however, allow me to offer alternatives to correct some of those “facts.”

Dastur should know that the reason so many corporations have fled America and taken the jobs with them is because, at 35%, our income taxes are the second highest in the world.

It’s a known fact that jobs and capital formation increase dramatically when taxes are lowered. For proof look at the results of the tax reductions engineered in the 1980s by President Ronald Reagan, that “Great Communicator” Dastur so loathes. Revenues to the U.S. Treasury nearly doubled during the years following this reduction.

Need more proof that boosting taxes lowers revenue? California enacted the largest tax hike in the history of America late last year. Tax receipts were down by nearly 30% year-over-year in April, for a reduction of more than $3 billion for the month.

And as to your theoretical self-employed minimum-wage earner (an oxymoron if there ever was one), those earning minimum wage don’t pay income taxes. Which, according to your letter, they apparently should.

And the hedge fund manager you trot out who purportedly pays only 15% in long-term capital gains on a billion-dollar salary? Let me explain that those earning a salary, whether $50,000 or a billion, pay taxes based on ordinary income.

Long-term capital gains taxes are those imposed on passive income, such as from investments, not salaries.

And considering that those in the top bracket pay 35% in income taxes, which is soon to be 39.6% once the Bush tax cuts for the “rich” sunset in 2011, plus state taxes (California at almost 11% ranks fourth highest in the country), don’t you think they’re paying enough already? The top 1% in wage earners pay more than 44% of all income taxes collected in the U.S. The top 5% pay 73%. How much more would it take to make you happy?

You want the middle class to be revitalized? Simple. Reduce government regulation, meddling and micromanagement, and lower corporate, personal and long-term tax rates. Those with the means will invest in new ideas and new businesses seeking profits they can actually keep some of, and the well-paying middle-class jobs will return in droves.

Or, we can just keep redistributing an ever-smaller pool of wealth while we devolve into socialism. From your letter I think I know which you’d choose.

CHUCK CASSITY lives in Costa Mesa.