A populist tax proposal.
Refer to
federal revenue sources pie graph - Google Search
Sources of federal government’s revenues, 3-year average 2009 – 2011.
44.21% Individual income taxes.
39% Social Security taxes, (employees and employers each pay 7.65% of payroll based taxes).
8% Corporate taxes.
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FICA is the most regressive federal tax. It’s most particularly a burden upon the working poor and their dependents.
I’m a proponent that the half of the payroll’s 12.4 earmarked for Social Security, and the entire 2.9% earmarked for Medicare, be revenue neutrally transformed from a payroll to what would effectively be a 4.55% general sales tax and enable revenue neutral reduction of our income taxing of individuals. (The transformation itself would effectively be reduction of taxes upon enterprises by 4.55% of their payrolls).
[Individual’s taxable incomes could be reduced by a finite amount per taxpayer and dependent. that finite amount should be pegged to a cost-price index number and annually monitored. To the amount of per capita incomes reduced threshold incomes, the numbers of income earners subject to individual income taxes would be reduced and our progressive tax rates would be somewhat more “flatten”].
This proposal would not increase net taxes upon the working poor and their dependents; it would increase the federal revenues available for Social Security and Medicare; it would increase both the federal taxes amounts and their proportions to the incomes paid by those earning greater than median incomes; it would recover some of the revenues we now lose due to income tax evasion.
This would be of net benefit to our economic and social wellbeing to the extent of the per capita taxable income treshold amount is reduced. Hopefully states would increase their benefits for the unemployed poor; to the extent that they would fail to do so, this proposal would be somewhat detrimental to unemployed poor dependent upon benefits granted by their states.
Respectfully, Supposn
Refer to
federal revenue sources pie graph - Google Search
Sources of federal government’s revenues, 3-year average 2009 – 2011.
44.21% Individual income taxes.
39% Social Security taxes, (employees and employers each pay 7.65% of payroll based taxes).
8% Corporate taxes.
///////////////////////////
FICA is the most regressive federal tax. It’s most particularly a burden upon the working poor and their dependents.
I’m a proponent that the half of the payroll’s 12.4 earmarked for Social Security, and the entire 2.9% earmarked for Medicare, be revenue neutrally transformed from a payroll to what would effectively be a 4.55% general sales tax and enable revenue neutral reduction of our income taxing of individuals. (The transformation itself would effectively be reduction of taxes upon enterprises by 4.55% of their payrolls).
[Individual’s taxable incomes could be reduced by a finite amount per taxpayer and dependent. that finite amount should be pegged to a cost-price index number and annually monitored. To the amount of per capita incomes reduced threshold incomes, the numbers of income earners subject to individual income taxes would be reduced and our progressive tax rates would be somewhat more “flatten”].
This proposal would not increase net taxes upon the working poor and their dependents; it would increase the federal revenues available for Social Security and Medicare; it would increase both the federal taxes amounts and their proportions to the incomes paid by those earning greater than median incomes; it would recover some of the revenues we now lose due to income tax evasion.
This would be of net benefit to our economic and social wellbeing to the extent of the per capita taxable income treshold amount is reduced. Hopefully states would increase their benefits for the unemployed poor; to the extent that they would fail to do so, this proposal would be somewhat detrimental to unemployed poor dependent upon benefits granted by their states.
Respectfully, Supposn
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