Saturday, September 11, 2010

A People's Tax Cut?

Robert Reich has proposed a People's Tax Cut.
Democrats should propose eliminating payroll taxes on the first $20,000 of income, and making up the revenue loss by applying payroll taxes to incomes above $250,000.

This would give the economy an immediate boost by adding to the paychecks of just about every working American. 80 percent of Americans pay more in payroll taxes than they do in income taxes. And because lower-income people would get most of the benefit, it’s likely to be spent.

It would also give employers an extra incentive to hire because they’d save on their share of the payroll tax. And most of the incentive would be directed toward hiring lower-income workers – who have taken the biggest hit on jobs and pay during the recession.
 It is completely unfair that the poor pay a higher percentage of their income on payroll taxes than the rich. I see no possible justification that the status quo should remain, and I think most American voters would agree. The Democrats should make this proposal and try to pass it.  If the Republicans block it, it would only hurt them in the election.  It's a win-win.  Either the plan passes, or Republicans get hurt come November.

Go for it Dems.  You can do it.

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