Back in the 1970s, some economists wanted to lower the payroll tax
(used to finance social security) because it would help fight
inflation. After all, employers treat it as a cost, part of the cost
of employing labor. If it didn't help fight inflation, it would
encourage greater employment. If social security is financed through
the regular income tax, it makes sense.
On 1/14/07, Michael Perelman <[EMAIL PROTECTED]> wrote:
He wants that & the flat tax. Lowering tax rates will increase gov't
revenues enough to save Social Security ....
Off course, the payroll tax is regressive, but Gilder no more wants to
save Social Security than has begun to support socialism.
On Mon, Jan 15, 2007 at 12:04:07AM -0500, Shane Mage wrote:
> Michael Perelman wrote:
> >
> >I am always amazed how market fundamentalists are able to use any
> >problem -- real or imagined -- as an excuse to carry out their
> >desired polices, even if they will make the problem worse.
> >
>
> >...As a key first step, we need to reduce the payroll tax by at least a
> >third...Ideally, as part of a flat tax program, we should eliminate
> >the payroll tax altogether..."
> >Gilder, George. 2007. "Economics Is Not For Actuaries."Wall Street
> >Journal (2 January): p. A 23.
>
> But what's wrong with this? The payroll tax, which falls entirely on
> workers, is the most regressive of all taxes. And a flat tax on that
> part of income exceeding a basic health-and-decency level
> {at least twice the present "poverty" level), especially if income were
> to be defined as including the pro-rata share of corporate profit
> for each private stockholder, would in practice be the most progressive
> of all taxes.
>
> Shane Mage
>
> "This cosmos did none of gods or men make, but it always was and is
> and shall be: an everlasting fire, kindling in measures and going out
> in measures."
>
> Herakleitos of Ephesos, fr. 30
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
--
Jim Devine / "Young people who pretend to be wise to the ways of the
world are mostly just cynics. Cynicism masquerades as wisdom, but it
is the farthest thing from it, because cynics don't learn anything.
Because cynicism is a self-imposed blindness, a rejection of the world
because we are afraid it will hurt us or disappoint us." -- Stephen
Colbert.
