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Reply #76: No, it isn't [View All]

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Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU
lastliberalintexas Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-06-04 12:09 PM
Response to Reply #74
76. No, it isn't
The payroll tax is an *extremely* regressive tax- one of our most regressive forms of taxation. In fact, it can probably only be argued that sales taxes are more regressive. Dean's overall tax proposals have been to lower the (regressive) payroll tax and replace it with higher (progressive) income taxes. Why is that something that a liberal would oppose? We would have more federal monies available for social programs, but that money would come from more progressive taxation. Those with the greatest ability to pay taxes should be paying more than the current rates (and I say that as part of a 2 person household that makes good money).

Payroll taxes also actually impede economic/job growth, since they tend to stifle an employer's ability or willingness to hire more workers. An employer will simply force some of its employees to work overtime hours (without additional payroll taxes being due) rather than hire 1 new employee since it would then have to pay higher payroll taxes. And if Shrub has his way, the OT hours route will be even more attractive, since OT pay will no longer be required.

The payroll tax ideally should actually be ELIMINATED and replaced with higher marginal income tax rates on those making more than a million a year. It does NOTHING good for our workers, since the funding for SS and Medicare could be obtained through more progressive forms of taxation. Other than a sales tax, it is the most intrusive form of taxation in a market economy. BTW- the least intrusive form of taxation in a market economy is the income tax. Throw that info at repubs the next time they start crying about income taxes.

I never said that SS and Medicare funding should be cut. But we will have to look at different methods of funding the programs over the next couple of decades as the Baby Boomers retire and my generation (who are far fewer in number) take up the responsibility for funding them. I just happen to believe that the vast majority of federal tax revenue (if not all of it) should come from the progressive income tax.

I'm sorry that you support the payroll tax. This is an issue we will just have to agree to disagree on, because I will NEVER see such a regressive form of taxation as something that a liberal pinko like myself should be in favor of.

And so you know, repubs would never support a cut in the payroll tax, mostly for the reasons I listed above. When a repub talks about cutting "taxes" you can almost bet the farm that s/he is ONLY referring to income taxes, which just happen to be our most progressive tax. They NEVER speak about cutting payroll/FICA, sales or property taxes (unless in a state like mine that has as its most progressive tax the property tax). They seem to think that income taxes are the only taxes Americans pay, and too many people buy into their framing of the debate.
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