Skip to main content

View Diary: I'm voting "yes" to save essential jobs (53 comments)

Comment Preferences

  •  I agree with you there but we could do even more (4+ / 0-)

    by undoing the decades of rethug manipulation of the federal tax code to shift the cost of government off the the very rich and onto the average American. I have been posting what I believe would be the best way to turn our whole economy around by making our entire federal tax system truly progressive once again.

    We need a truly progressive tax system.

    The costs of payroll withholding taxes alone should be shifted to all businesses gross receipts which would require a much lower rate (between 3-5%) to realize the same amount of government revenues. Wage earners have been taxed  on their gross earnings for decades  and they cannot pass the costs of their  taxes along to their customers like businesses always defer their costs. Shifting the costs to  the businesses gross earnings spreads the cost over a much  larger base and reduces the costs to each individual. This would actually increase government revenues while reducing the tax rates. Divorcing taxation from payroll entirely would greatly relieve downward pressure holding down pay  rates and discouraging adding additional  employees.

    We need to simplify the federal income tax code and really make it truly progressive. I would suggest raising the minimum  taxable income from the current $400 to $75,000. Begin the progressive  income tax at $75,001 without any deductions,  credits and loopholes on all income no matter the source. This includes the Wall Street gamblers and the high 'n mighty corporations. All incomes should be equal no matter where it comes from and should pay the same  progressive tax rates as  any other.

    To be clear though, everyone shouldn't have been paying income taxes in the  first  place. In fact, wages/salaries were not considered taxable income until the reporting rules were changed in 1945 with the victory  tax which was to be temporary until the debt from WWII was retired.  The income tax was always  intended to be assessed only on those  that already received economic benefit from government. It's the business community that benefit from government action.  The businesses benefit from the government taking responsibility for  their workers health and retirement costs through Medicare and  Social Security. Government provides a literate workforce through  public education. Government provides the infrastructure that provides reliable transportation to move products and protection under the  laws. They should not avoid their taxes they should  embrace them for all they provide to them.

    Besides the costs of all taxes  are worked into the price of the product or  service the business  sells. These costs are passed from vendor and supplier to retailer and then finally to those that sell their labor for they cannot  pass  their costs on to anyone else. The wage earner is the lowest  point of the tax  food chain, they always end up being the ultimate  taxpayer.

    Both of these reforms together would allow around  25% more payroll dollars to stay circulating in local economies  even longer than they linger today. This would drive up demand  for more products and services which would create more  jobs and generate even more tax revenues and reduce demand for government services than the current tax system.

    Really don't mind if you sit this one out. My words but a whisper -- your deafness a SHOUT. I may make you feel but I can't make you think..Jethro Tull

    by RMForbes on Mon Aug 09, 2010 at 10:04:53 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site