Tapsearch Com EditorJust quit payroll tax and create more jobs
December 7th 2010 19:16
Bizarre Politics Reports:
President Obama and other politicians are finally recognizes that the payroll tax is a tax on the working poor.
By Ray Tapajna with parts based on reports by William Drayton, chairman of Get America Working
We need to stop taxing jobs and putting a tariff on workers
President Obama tax cuts include cutting the payroll tax paid by all workers from 6.2 percent to 4.2 percent for a year while extending recently expired unemployment insurance for 13 months. These cuts like other tax cuts will not help the economy as long as any extra money goes to the retail level and then quickly fans out to where the products are made or grown. Much of this happens somewhere else and not in the USA. And the payroll tax, represents more than a 15.3 percent overhead for workers and businesses who are trying to compete in a global economic arena where others do not have this overhead. Even a college president complained when the college's work study programs were no longer exempt from the payroll tax. The college president said that he would have to turn away many students who could have been enrolled in these programs but the overhead of payroll tax limited the number that could be accepted.
However, it finally demonstrates that payroll taxes are real taxes that are used to pay the bills just like income taxes do. Payroll taxes are part of the general fund and even used to fight wars.
Futhermore, when only 38 percent of all workers in the U.S. qualify for unemployment insurance any extension of unemployment insurance only apply to a few workers. The rest live in limbo.
The BLS ( Bureau of Labor Statistics ) unemployment data is gathered by interviewing about 50,000 households with occupants over the age of 16. Those who answer the phone, are asked if they were looking for a job in a certain week in the previous month. If they say yes, they are considered unemployed. If they say no, they are not considered unemployed, even if they have no job. Someone who is seeking employment while working in a family business or on a farm without pay is also considered employed.
People who are working part time or at an odd job who believe they cannot find a full-time job are not counted. The term underemployment has lost its defintion in the world of unemployment reporting. Millions of " the retired" who want work but can not find any are not counted. And many who find something while being on Social Security lose part of their Social Security because of working. Much of the same is true for millions who are under Social Security disabilities.
William Drayton, a MacArthur Fellow and chairman of Get America Working, reports :
" If one counts all over-18 adults who are healthy and not in any school, medical institution or jail and who thus could be working, but are not, one finds that almost half the country's human capacity is not being used." ( This adds up to about 50 percent unemployment when all is considered . )
The payroll tax remains to be an immense burden to U.S. workers and businesses. Today, payroll taxes total 15.3 percent and are applied to the first $65,000 that a person earns. This acts as a flat tax on the working poor who have to pay it on every dollar the make.
Just think what could happen if the cost of labor in the USA was 15 percent less. How many more jobs could be created?
A study found that a 1 percent increase in the employment of older people led to a 7.29 percent decrease in days of hospitalization.
The U.S. has an abundance of labor. The payroll tax stops the country from unleashing this power. The awesome industrial might of the U.S. won World War 2 and restored economies in Europe and the Far East through the Marshall Plan. There are many other ways to fund needed government services. But to tax work is not make common sense. See our suggestion - Taps instead of Taxes.
Search under tapsearch taps instead of taxes or click on Ezine Articles - Taps instead of Taxes
We need to stop taxing jobs and putting a tariff on workers
President Obama tax cuts include cutting the payroll tax paid by all workers from 6.2 percent to 4.2 percent for a year while extending recently expired unemployment insurance for 13 months. These cuts like other tax cuts will not help the economy as long as any extra money goes to the retail level and then quickly fans out to where the products are made or grown. Much of this happens somewhere else and not in the USA. And the payroll tax, represents more than a 15.3 percent overhead for workers and businesses who are trying to compete in a global economic arena where others do not have this overhead. Even a college president complained when the college's work study programs were no longer exempt from the payroll tax. The college president said that he would have to turn away many students who could have been enrolled in these programs but the overhead of payroll tax limited the number that could be accepted.
However, it finally demonstrates that payroll taxes are real taxes that are used to pay the bills just like income taxes do. Payroll taxes are part of the general fund and even used to fight wars.
Futhermore, when only 38 percent of all workers in the U.S. qualify for unemployment insurance any extension of unemployment insurance only apply to a few workers. The rest live in limbo.
The BLS ( Bureau of Labor Statistics ) unemployment data is gathered by interviewing about 50,000 households with occupants over the age of 16. Those who answer the phone, are asked if they were looking for a job in a certain week in the previous month. If they say yes, they are considered unemployed. If they say no, they are not considered unemployed, even if they have no job. Someone who is seeking employment while working in a family business or on a farm without pay is also considered employed.
People who are working part time or at an odd job who believe they cannot find a full-time job are not counted. The term underemployment has lost its defintion in the world of unemployment reporting. Millions of " the retired" who want work but can not find any are not counted. And many who find something while being on Social Security lose part of their Social Security because of working. Much of the same is true for millions who are under Social Security disabilities.
William Drayton, a MacArthur Fellow and chairman of Get America Working, reports :
" If one counts all over-18 adults who are healthy and not in any school, medical institution or jail and who thus could be working, but are not, one finds that almost half the country's human capacity is not being used." ( This adds up to about 50 percent unemployment when all is considered . )
The payroll tax remains to be an immense burden to U.S. workers and businesses. Today, payroll taxes total 15.3 percent and are applied to the first $65,000 that a person earns. This acts as a flat tax on the working poor who have to pay it on every dollar the make.
Just think what could happen if the cost of labor in the USA was 15 percent less. How many more jobs could be created?
A study found that a 1 percent increase in the employment of older people led to a 7.29 percent decrease in days of hospitalization.
The U.S. has an abundance of labor. The payroll tax stops the country from unleashing this power. The awesome industrial might of the U.S. won World War 2 and restored economies in Europe and the Far East through the Marshall Plan. There are many other ways to fund needed government services. But to tax work is not make common sense. See our suggestion - Taps instead of Taxes.
Search under tapsearch taps instead of taxes or click on Ezine Articles - Taps instead of Taxes
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