<P>Thank for the useful feedback on this, I should have remembered that some payroll taxes are split. Nonetheless no one here seems to really disagree that the proposal in the usual form is more Laffer Curve/anti-social welfare stuff. With regard to Reich's liberal; variant, Marta says:</P>
<P><BR>> And what about the fact that some level of unemployment must be <BR>maintained and the disabled have traditionally been in that segment <BR>of the population -- permanently unemployed.<BR>Marta</P>
<P>But the disabled aren't usually considered part of the reserve army of the unemployed because they often can't work without reasonable accommodation, so it's not an effective threat to a non-disabled worker to say, Take what we give you and like it, or we'll fire you and hire a disabled worker who'll work for less! Even if the disabled worker would work for less, the additional costs of accommodation might even out the expenses. <BR><BR>>Social Security and Medicare payroll taxes are split between the worker and<BR>>the employer. Workers pay FICA (Federal Insurance Contributions Act, for you<BR>>trivia buffs)=6.2%, capping off at $87,000 (a regressivity in the FICA tax),<BR>>Medicare 1.45% at any salary amount. Employers pay 6.2/1.45 as well.<BR>><BR>>This is one of the reasons independent contractor use has mushroomed so<BR>>much; since they are not employees, there is no obligion on the part of the<BR>>employers to pay their share of the employmen
t taxes--the IC has to pay both<BR>>halves through the year and then get a deduction for 1/2 of them come tax<BR>>time.<BR>><BR>>> Note also that payroll taxes come from workers' salaries, not employers'<BR>>profits,<BR>><BR>>snip<BR>><BR>>Alan Jacobson<BR><BR><BR>-- <BR>Marta Russell<BR>Los Angeles, CA<BR>http://www.disweb.org</P><p><br><hr size=1>Do you Yahoo!?<br>
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