To give some idea of what a difference it would make to cut the payroll tax than
income taxes, or in addition to income taxes, consider the following. While the
bottom half of tax paying income earners pay around 4% of the total income tax,
the same group pays just under 20% of the total payroll tax. The bottom 75%
pay 17% of the total income tax, while the same group pays half of the payroll
tax. Cutting payroll taxes puts moolah in the hands of lower income folks who
need the bread, and who are more likely to spend larger portions, on normal
goods (not luxuries). Doesn't this mean that a payroll tax cut is the
progressive tax cut? Max?
