Tapsearch Com EditorObama ignores 70 percent of workers
January 7th 2009 02:55
Bizarre Politics Reports:
Tax cuts proposed by Obama leave out the working poor class and forgets those who already have lost everything.
By Ray Tapajna, Editor and Artist at Tapart News and Art that talks -see Real Tax Reform
Obama tax cuts and funny money program won't work. Free Trade and Globalization has made our tax codes obsolete. Payroll Taxes act as a tariff on work. Obama never mentions anything about a cut in this flat tax on the working poor.
70 percent of all workers in the USA, pay more in payroll taxes than they do in income taxes and so the income tax cuts will not help them to any great degree. It also must be noted that businesses pay one half the cost of the payroll tax and this overhead conflicts with any tax cuts they may get.
The payroll tax now is a flat tax on the working poor. It can also be described as a tariff on work and labor instead of a tariff on products. The payroll tax is an immense burden on U.S. workers and a heavy overhead that prompts companies to move outside the USA to avoid it.
The payroll tax funds the Social Security trust fund but the money is used as if it was income tax in the general fund. President Clinton even admitted he used it to fund the Balkan wars.
The tax was only 2 percent when introduced in 1936 and it applied to only the first $3,000 of a worker's wage. Today, payroll taxes are 15.3 percent and are applied to the first $65,000 in wages. Many who enjoy interest incomes, do not pay it on the interest they receive. Not only do the working poor pay a higher percentage of their income than the rich, but many employers find ways to make the workers pay the employers share too. The payroll tax also blocks hiring more workers. Experts on labor supply and demand say that a reduction in payroll taxes would create more jobs.
President Ronald Reagan who was obviously anti-union passed the largest increase in payroll taxes in its history. His trickle down economics did not work and now it is a mute issue as the financial community and big business are being bailed out. On top of all this, the Federal Pension Insurance is running out with the government now paying many pensions of workers from corporations that went bankrupt. And Obama does not bring up the subject of all those in America who have lost everything that took a life time to accumulate. These people are not part of any rescue package. They are outside looking in at the process.
Today, a contract worker can end up paying close to 20 percent on only a $10,000 income considering federal, state and local taxes - which leaves the worker with only $8,000 to take home. With only 37 percent of all workers qualifying for unemployment insurance, there is a vast population missing in action hidden in a silent depression.
Doing away with the payroll tax would cut the cost of labor 15 percent. This cut would be a very large incentive for many businesses to hire rather than fire. And this incentive would apply to more people willing to take risks in starting up businesses on their own where they have to employ others to succeed.
Actually our total tax codes are obsolete because of Free Trade and Globalization with the current bail outs of the financial community and big business following it. We now have reversed tariffs in effect leveled on money products and workers.
We actually suggest getting rid of all taxes and instead put a tap every transaction at a rate of 3 percent automatically added. There would be no need to police the process since it would be automatic. On imports, another 3 percent could be added to make up for the lost by not making the product domestically. See Real Tax Reform and Taps instead of Taxes This is not a perfect answer but would be better than what is happening now.
The funny money games now being proposed will not work. Our economy based on making money on money instead of making things is burning out and only local value added economies will get us out of our mess. There is no one size fits all solution. The same applys for countries around the world.
Obama tax cuts and funny money program won't work. Free Trade and Globalization has made our tax codes obsolete. Payroll Taxes act as a tariff on work. Obama never mentions anything about a cut in this flat tax on the working poor.
70 percent of all workers in the USA, pay more in payroll taxes than they do in income taxes and so the income tax cuts will not help them to any great degree. It also must be noted that businesses pay one half the cost of the payroll tax and this overhead conflicts with any tax cuts they may get.
The payroll tax now is a flat tax on the working poor. It can also be described as a tariff on work and labor instead of a tariff on products. The payroll tax is an immense burden on U.S. workers and a heavy overhead that prompts companies to move outside the USA to avoid it.
The payroll tax funds the Social Security trust fund but the money is used as if it was income tax in the general fund. President Clinton even admitted he used it to fund the Balkan wars.
The tax was only 2 percent when introduced in 1936 and it applied to only the first $3,000 of a worker's wage. Today, payroll taxes are 15.3 percent and are applied to the first $65,000 in wages. Many who enjoy interest incomes, do not pay it on the interest they receive. Not only do the working poor pay a higher percentage of their income than the rich, but many employers find ways to make the workers pay the employers share too. The payroll tax also blocks hiring more workers. Experts on labor supply and demand say that a reduction in payroll taxes would create more jobs.
President Ronald Reagan who was obviously anti-union passed the largest increase in payroll taxes in its history. His trickle down economics did not work and now it is a mute issue as the financial community and big business are being bailed out. On top of all this, the Federal Pension Insurance is running out with the government now paying many pensions of workers from corporations that went bankrupt. And Obama does not bring up the subject of all those in America who have lost everything that took a life time to accumulate. These people are not part of any rescue package. They are outside looking in at the process.
Today, a contract worker can end up paying close to 20 percent on only a $10,000 income considering federal, state and local taxes - which leaves the worker with only $8,000 to take home. With only 37 percent of all workers qualifying for unemployment insurance, there is a vast population missing in action hidden in a silent depression.
Doing away with the payroll tax would cut the cost of labor 15 percent. This cut would be a very large incentive for many businesses to hire rather than fire. And this incentive would apply to more people willing to take risks in starting up businesses on their own where they have to employ others to succeed.
Actually our total tax codes are obsolete because of Free Trade and Globalization with the current bail outs of the financial community and big business following it. We now have reversed tariffs in effect leveled on money products and workers.
We actually suggest getting rid of all taxes and instead put a tap every transaction at a rate of 3 percent automatically added. There would be no need to police the process since it would be automatic. On imports, another 3 percent could be added to make up for the lost by not making the product domestically. See Real Tax Reform and Taps instead of Taxes This is not a perfect answer but would be better than what is happening now.
The funny money games now being proposed will not work. Our economy based on making money on money instead of making things is burning out and only local value added economies will get us out of our mess. There is no one size fits all solution. The same applys for countries around the world.
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Is Obama obsolete already ?
Left out of Obama's stimulus plan
By Jerry DePalmo
Waynesburg Ohio
.... The (Obama economic stimulus) plan, as described, is to withold taxes from people's paychecks, with single person receiving up to $500 and working couples $1000. I understand that this would be done over either a one- or two- year time frame. That would result in single people getting tax relief of about $5 or $10 per week and a couple getting $10 or $20. ..................
With rising unemployment how will people who are not working benefit from this stimulus plan?
Note: Only 37 percent of all American workers qualify for unemployment insurance . Therefore 63 percent are living in economic limbo and there are only vague definitions and stats of who they are. It is obvious the millions are missing in action from any kind of real reporting . It is obvious that the unemployment rate reporting does not match up with the real world of the streets.
By Sue Roehl
Bay Village, Ohio
Guess who is missing from this new stimulus equation: retirees and people who have lost their jobs. They need help too. Where is Obama's plan for them?
Retirees who have paid into Social Security for years and are now on fixed income have seen their retirement savings plummet but still have financial obligations. And newly unemployed individuals most certainly have financial obligations as well.
By John Schultz
Lakewood, Ohio
........ unfortunately, it - (Obama stimulus package ) will not include al the lower classes of people. (Witholding taxes do not apply to many jobs) .....people like taxi drivers and those who work at similar jobs - (waitresses - pizza delivery - commission only sales people etc )
and don't get pay checks. ..... It's a cash back daily business, so there is no paycheck to deduct from.
And what about the unemployed and those laid off through cutback? They could really use a stimulus. Are they forgotten?
( And what about the millions of people who have lost everything they worked an entire life to save --- When NAFTA and GATT were passed they were promised help if they lost their jobs due to Free Trade --- What happen to those promises. )
Comment by Tapsearch Com Editor
Ethics Box
Stories behind News in Global Economic Arena
The Rationale Quest
The World's News
Tapsearch explores untold stories