Friday, January 15, 2010

Taxation With Representation....

Some have considered eliminating the self-employment tax. Methinks the law of unintended consequences would jump up and bite us if we eliminated the self-employment tax, not that all that many are enamored with those 1040-ES quarterly payments sent off with a perfumed check.....Elimination would provide a very large incentive for employers to turn their employees into independent contractors. Then who funds the Social Security and Medicare programs?

Many do not grasp the role of FICA and Medicare taxes play in employment costs. They insist the employer pays 7.65% on FICA and that money does not affect real earnings. No - the employee pays that tax via lower compensation.....

We are either going to pay for what we have spent with higher taxes or via inflation. And if we are going to pay with higher taxes, let's cut the games and put it in the rate and flatten the structure. A little honesty would go a long way, especially in a profession where honesty and getting elected often conflict....

1 comment:

黑色幽默 said...

如果你批評他人。你就沒有時間付出愛.........................