In this case, they won't allow Cain to include the employer's share of FICA and Medicare payroll tax in the cost of employment.
It costs the employer 107.65% of the employee's salary to pay salary and payroll tax for the employee. 7.65% of the salary goes straight to the government as the employer's share. The employer deducts another 7.65% of the salary for the employee's share of payroll taxes. Then deductions are made for income tax, medical insurance, 401k’s, etc., leaving quite a hole in the original salary. But 15.3% of the salary goes to the government.
Politifact is not a reliable source for determining truth.
There was a FR thread/post from an old article (New Deal era IIRC). It talked about gov’t wanting more of the economic pie - or in their example - more of the “water”.
If the pool of resources ($) is in private hands, dipping water out of the spring-fed pond is a hard way for the gov’t to get resources AND make the pool of water smaller.
However, if the gov’t can divert some of the water from the springs/creeks going into the pool - they get their money AND reduce the pool available for the private interests.
[Hmmm - my visual: along with the pyschological advantage of tapping the springs “before it is really yours anyway”; compared to a huge pump in your pond and the hose running past the house to the gov’t tanker truck parked in your driveway.]
Anyway - an interesting visual when it comes to payroll taxes, SS, and now of course healthcare. (Boy - talk about diverting resources from the private to the government!).