cutting payroll taxes

Marta Russell ap888 at lafn.org
Mon Dec 16 10:06:59 PST 2002


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



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