Dear God are these fools delusional! The employer 7.5% is wages directly out of the employees compensation!
Can you help us out by computing what a person with an income of $40,000 will pay in taxes under 9-9-9 and under the current tax code?
Say this person has 2 children and a mortgage, under current tax laws, he probably pays NOTHING in taxes.
How much would he pay in taxes under 9-9-9?
When I was in high school (40 years ago) I posed the idea that the employer payroll taxes really came out of the employee paycheck since it was a cost of employment.
My very liberal poly sci teacher argued with me. He had been the president of the local AFT. I shot back at him: If a employment taxes were axed tomorrow, wouldn’t you be on strike the very next day in order to get “your” share of that money? (I realized that these taxes are different for teachers, but I put him in the general case.)
“Payroll tax generally refers to two different kinds of similar taxes. The first kind is a tax that employers are required to withhold from employees’ wages, also known as withholding tax, pay-as-you-earn tax (PAYE), or pay-as-you-go tax (PAYG). The second kind is a tax that is paid from the employer’s own funds and that is directly related to employing a worker, which can consist of a fixed charge or be proportionally linked to an employee’s pay.” wikijunk
What you said! Also, I'm for pretty much anything that removes progressivity (Read: Marxism) from the tax code.
Indeed. Who are these fools?!!