TAXES: Priorities

Almost everybody agrees that taxes should be cut next year. Almost nobody agrees on what taxes should be cut first. This week the Research and Policy Committee of the Committee for Economic Development presented some ideas. The main C.E.D. recommendation: top priority should be given to individual income-tax cuts, with relatively greater percentage reductions in the top brackets.

About 3% of U.S. taxpayers earn $10,000 or more a year. Yet this small slice of the tax economy carries 36% of the nation's income-tax burden (see chart). Some high-salaried executives, C.E.D. suggests, have lost incentive because "what is left after taxes is...

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