the cap on social security tax is around 90,000 now, the medicare tax has no cap but it is over 4 times lower than the SS tax. I think it would be better to increase the personal exemption by 1,000 dollars or more each, year for both the income tax and social security if you also allow for employees deducting the social security/ medicare tax from their income tax, drop the entire 15% rate to 10% or less and end the top rate. Work hard to end the crimnal charge of tax evasion, the US can be just as civil as the Swiss.--- In [email protected], "Thomas L. Knapp" <[EMAIL PROTECTED]> wrote: > > Quoth Boyd W. Smith: > > > There is an old saying that says that the perfect is the enemy of > the better. The fair tax while not perfect is clearly much better. > > Only if by "clearly much better" you mean it: > > - Results in the theft by government of just as much money as the > income tax (the "Fair" Taxers boast that their proposal is "revenue > neutral"); > > - Results in the same amount of, or perhaps more, redistribution of > wealth than the income tax (the "Fair" Taxers boast that their > proposal is at least as "progressive" as the income tax); > > - Puts every American on the dole so that they're recipients of > monthly government welfare checks which the majority will likely fight > tooth and nail to keep coming in perpetuity (the "prebate"); and > > - The "Fair" Taxers arguments about eliminating the IRS aside, _will_ > require a bureaucracy to administer (both to collect and to send out > the welfare checks). > > The "Fair Tax" is at _least_ as bad as the income tax in every way, > and worse in some ways. It's not a tax cut. It's not a tax > elimination. It's just a strengthening of the tax system by linking it > to a welfare program -- just like Social Security, which has been a > "third rail" issue in American politics for half a century precisely > because millions of Americans have a vested interest in keeping the > checks coming. > > It may not be politically possible to get the income tax straight- out > eliminated right now, but it is politically possible to get it CUT, > which would be a far superior alternative to the "Fair" Tax. > > The Boston Tea Party's program calls for universal, bottom-up tax cuts > as follows: > > "The Boston Tea Party calls for legislation adopting an annual, > regularized increase in the personal exemption to the federal income > tax of $1,000 or more, and the additional application of said personal > exemption to all FICA/Social Security taxes paid by employees and > employers." > > Members of Congress (mostly Democrats) routinely propose and vote for > increases to the personal exemption, so it's politically doable. > > Increases to the personal exemption give EVERYONE who pays taxes a tax > cut, from the janitor at the local factory to Bill Gates. > > Increases to the personal exemption remove people from the tax rolls > and withholding treadmill entirely (every time the exemption goes up, > more people's income falls below the taxable amount). > > Applying the personal exemption to Social Security payments would > address the extreme regressivity of the Social Security system. The > poorest people pay proportionately the most in Social Security taxes > (since the requirement to pay is capped at a certain income level in, > I believe, the $60K range), and they receive the fewest benefits (due > to shorter lifespan). > > Eliminating the income tax is the best option. Failing that, cutting > it is. Replacing it with a tax that doesn't cut taxes, doesn't remedy > redistribution problems, doesn't eliminate (or probably even reduce) > the associated bureaucratic and administrative costs, and puts every > American on government welfare is just a scam if the goal is to reduce > or eliminate taxation. > > Tom Knapp >
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