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To: Blood of Tyrants
except of course that this article is obfuscating the whole issue by only considering income taxes as the example. I don't know the exact figures, but I think that of all federal revenue collected about 35-40% is income taxes. Another 30% of federal revenue comes from payroll taxes. Payroll taxes fall entirely on the non-rich, if you make past a certain amount you pay zero payroll taxes.

We should all understand that when you cut income tax rates from our current rates that this will cause a supply side boon to the economy, meaning that the economy will grow more rapidly than it otherwise would and that the federal guv will collect more revenue than it otherwise would. This happened in the 1980's and in all previous large income taxes we've had. Even Alice Rivlin, the democrats' top expert on budget matters, said that this happened in the 1980's.

Cutting payroll taxes may be a good idea, but it will also most likely result in a decline in revenue collected by the government. So, we never hear talk about cutting payroll taxes. The result of this is that many middle income people have to pay a higher portion of their income in taxes than many upper income people.

19 posted on 08/05/2002 8:50:44 AM PDT by Red Jones
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To: Red Jones
Two problems, one minor, one major. The minor one is payroll taxes is on all earned income.

The major problem is that payroll taxes are to fund a retirement benefit and not to fund the general expenses. So, the more accurate statement is that the government forces lower income people to fund for retirement at a higher portion of thier income than high income people.

We should not force them and we should let them have more control over their own retirement funds.

23 posted on 08/05/2002 9:21:41 AM PDT by VRWC_minion
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