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To: Remember_Salamis; Your Nightmare
Tack on 15.3%. An overwhelming majority of economists believe that the employer's share of payroll taxes are taken out of the employees paycheck.

Everyone except the pinheads at AFFT know that...That's why the repeal of the payroll tax can't lower prices. They'll have to give it directly to the employee, then report that to SS...(Were you saying something about compliance costs?)

Tack on 15.3%

I think you meant subtract 15.3% the CBO rightfully includes the employer's 7.65% contribution as your income just as it is part of self-employment income.

47 posted on 08/21/2004 3:36:32 PM PDT by lewislynn (Why do the same people who think "free trade" is the answer also want less foreign oil dependence?)
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To: lewislynn

They'll have to give it directly to the employee, then report that to SS...(Were you saying something about compliance costs?)

Hmmmm, you can certainly ask for a raise if you want. Course the employer will do what best increases his bottom line in sales as the compitition lowers their prices.

 

HELVERING v. DAVIS, 301 U.S. 619 (1937)

CRS Report for Congress (98-422 EPW)

"Taking the Social Security trust funds "off budget" has not changed how Social Security funds are handled. They are treated the same way today as they were in 1937 when Social Security taxes were first levied


48 posted on 08/21/2004 4:29:11 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: lewislynn

There's more to price reduction than Payroll taxes:

CASCADED Corporate Taxes
Tax compliance

If you're willing to go on the record, right here, and say that you think payroll taxes will go back to the employee, theat's fantastic. Why?

Because that's EXACTLY what AFFT and Dr. Jorgensen say! They REPEATEDLY state CORPORATE TAXES and COMPLIANCE COSTS are responsible for the current inflated price of goods. Here's a snippet from "Thumbnail Sketch of the FairTax" from FairTax.org:

"All Americans take home their whole paychecks. Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks.
Retail prices no longer hide corporate taxes or their compliance costs, which drive up costs for those who can least afford to pay. Did you know that hidden income taxes and the cost of complying with them currently make up 20 to 30 percent of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices - from 20 to 30 percent higher than they would otherwise be - for everything you buy. If competition does not allow prices to rise, corporations lower labor costs, again hurting those who can least afford to lose their jobs. Finally, if prices are as high as competition allows and labor costs are as low as practical, profits/dividends to shareholders are driven down, thereby hurting retirement savings for moms-and-pops and pension funds invested in Corporate America. With the FairTax, the sham of corporate taxation ends, competition drives prices down, more people in America have jobs, and retirement/pension funds see improved performance."


49 posted on 08/21/2004 4:33:45 PM PDT by Remember_Salamis (Freedom is Not Free)
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To: lewislynn; Your Nightmare; ancient_geezer

If you take home $1,000 a month, here's what your check would look like if you included the Employer's share:

Pre-tax: $1,000



- SS/MED: $76.50
- Income: $250.00


32.6% Tax-rate

With Employer Share included:

Pre-tax: 1,076.50


- SS/MED: $153
- INCOME: $250


37.43% Tax-rate

The only reason we get this quirky math is because the Employer's share is exempt from income taxation. If it weren't, like it is with the self-employment tax, this person would in fact pay $153 in SS/MED, $269.12 in Income, equaling $422.12 in taxes and a 39.21% tax rate.

And what does this do? It inadvertantly DISCOURAGES entrepeneurialism. Why work for yourself when all it will do is make you pay 4.75% MORE MONEY to the government on top of risk you're already taking to work for yourself.


50 posted on 08/21/2004 4:46:13 PM PDT by Remember_Salamis (Freedom is Not Free)
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To: lewislynn

"That's why the repeal of the payroll tax can't lower prices. They'll have to give it directly to the employee, then report that to SS...(Were you saying something about compliance costs?)"

Can you explain this to me? I seem to be getting the same SS deductions confiscated from me, yet the statements I receive have told me my benefit has been maxed out. Is the pay out supposed to be based on the amount we earn in our lifetime, instead of maxing out after about 15 years of stealing from us?


74 posted on 08/23/2004 5:16:35 AM PDT by CSM (To spread the wealth the liberal is willing, he'll take YOUR dollar and keep his shilling. -albertp)
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