cutting payroll taxes

[Marta Russell]

I am remembering that it was Robert Reich who advocated this payroll 
tax cut on one of those talking head TV shows.  And I believe that 
Forbes had no objections. So why would Reich - a liberal - be pushing 
this as a solution to the employment crisis?

And what about the fact that some level of unemployment must be 
maintained and the disabled have traditionally been in that segment 
of the population -- permanently unemployed.
Marta


>Social Security and Medicare payroll taxes are split between the worker and
>the employer. Workers pay FICA (Federal Insurance Contributions Act, for you
>trivia buffs)=6.2%, capping off at $87,000 (a regressivity in the FICA tax),
>Medicare 1.45% at any salary amount. Employers pay 6.2/1.45 as well.
>
>This is one of the reasons independent contractor use has mushroomed so
>much; since they are not employees, there is no obligion on the part of the
>employers to pay their share of the employment taxes--the IC has to pay both
>halves through the year and then get a deduction for 1/2 of them come tax
>time.
>
>>  Note also that payroll taxes come from workers' salaries, not employers'
>profits,
>
>snip
>
>Alan Jacobson

-- 
Marta Russell
Los Angeles, CA
http://www.disweb.org