Flat Tax?

Tom Lehman TLEHMAN at lor.net
Fri Jan 22 14:07:23 PST 1999


Dear Steve,

Can you fill us in on the details of the payroll taxes associated with RR retirement?

As far as Steelworkers go, many are surprised to find out that there is a $68,400 dollar cap on contributions into SS. Those Steelworkers who know there is a $68,400 cap mostly think it should be raised, and, the wealthy should pay their share. Sure your are always going to a have a few radicals who would complain about raising the cap---like Liberace crying all the way to the bank---if you know what I mean.

Your email pal,

Tom L.

Steve Bruns wrote:


> Thank you for the response to my question. Perhaps I should have been more specific. I
> did indeed mean "taxable income" where I used "income". Also, reference directing
> economic activity, I meant the entire tax structure not simply the federal income tax
> code. Roger the "not very efficient and fraught with unforeseen consequences" though
> the manipulative aspects of taxing policy have probably moved to other venues.
>
> Confiscatory, regressive SS/RR Retirement payroll taxes certainly have an effect on the
> direction of the economic activity in my neighborhood.
>
> Steve Bruns
>
> "Henry C.K. Liu" wrote:
>
> > The reason for the complexity in determining the taxable income is in claiming the
> > deductions, not in determining gross income. The use of the income tax to direct
> > economic activities has been largely reduced by the limitation on deductabilities and
> > the drop in the maximum rate (from 90% to 33%). This is why many tax-driven
> > investments and philanthropies are out of business.
> > It is generally acknowledged that the use of the tax code to direct economic policy
> > is not very efficient and fraught with unforeseen consequences.
> >
> > Henry C.K. Liu
> >
> >



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