FICA’s our most regressive federal tax.

[Supposn]

FICA’s our most regressive federal tax.

Employees and employers each directly pay 7.65% of payrolls for FICA payroll tax.
[All enterprises expenses reduce enterprises net profits and thus are eventually paid by the recipients of the enterprises profits and/or they increase the enterprises prices and thus the expenses are eventually paid by the customers.]
Employers FICA taxes are generally paid by customers and thus they behave as a sales tax that (unlike other sales taxes), additionally discourages job creation.

The effective rate of what functions as a federal sales tax is dependent upon the amounts of U.S. payrolls (which are almost entirely subject to FICA taxes) proportion to the tax base of a proposed sales tax.

If the nation’s aggregate payrolls are 1/3 of our sales, we’re all now paying the equivalent of a 2.616% sales tax.
If our payrolls are 1/2 of our sales, we’re paying the equivalent of a 3.976% sales tax.

All employees directly and indirectly pay within 10.266% to 11.626% of their payroll earnings for FICA taxes. That’s a significant federal tax upon working poor families that “pay no income taxes”.

FICA payroll tax is our most regressive federal tax.

Respectfully, Supposn

 

[Supposn]

Reduce employees' & employers’ taxes but retain tax revenues

Reduce wage earning families’ and employers’ total taxes by replacing a portion of FICA with federal sales tax revenue.

(If USA’s payrolls do not exceed half of a proposed sales tax’s base), replacing an equal portion of employers and employees FICA’s payroll taxes with a general sales tax equal to employers’ tax rate’s reduction would not reduce federal tax revenues.

I advocate reducing both employers and employees’ FICA by 4.55% of payroll and enacting a 4.55% federal sales tax.

Although employees’ net tax reductions are not apparent, this tax method would reduce both employers and employees’ net FICA taxes. Remember that employers’ FICA taxes are generally passed on to their customers.

(If U.S. payroll amounts are ½ of a proposed sales tax’s base), Employers’ 4.55% of payroll devoted to FICA act as equivalent to a 2.327% federal sales tax. Thus 9.10% of payroll replaced by a 4.55% federal sales tax would decrease employees’ actual taxes by 2.327% of their payroll earnings.

To the extent that an employees’ family does not spend their payroll earning for purchases subject to the proposed sales tax, employees’ taxes are further reduced.

Respectfully, Supposn

 

[Supposn]

There’s no logical relationship between medical need and income.

There’s no logical relationship between medical need and income.

I’m opposed to FICA funding of federal medical insurance (as opposed to groups such as federal employees or military veterans). I advocate these net federal expenses be entirely funded by a broader than USA’s payrolls as a tax base.

I’m opposed to pretending Social Security retirement should be a self funding insurance application funded by employees and their employers. I advocate half of SS retirement benefits be financed tax base greater than that of USA’s aggregate payrolls.

I’m opposed to limiting maximum incomes of federal medical or retirement benefit recipients. They paid their full trades and in most cases such financial gate keeping are contrary to our nation’s best interests. Such limitations are contrary to our nation’s best interests.

SS retirement benefits are subject to income taxes. I’m opposed to further penalizing SS retirement beneficiaries if they wish to continue working.

Respectfully, Supposn