To: The United States House of Representatives
Payroll Tax Reform
Legislate a Social Security Tax exemption on first $1,000 earned per month and eliminate the maximum cap on earnings subject to Social Security taxes by employee, employer, and the self-employed to include all taxable earnings.
This regressive tax must be corrected by exempting the first $1,000 of each wage earner each month and eliminating the maximum wage cap.
This change, without raising the level of benefits, would ease the burden of taxation on those in the absolute lowest economic position to a flat tax rate on all others equally.
This regressive tax must be corrected by exempting the first $1,000 of each wage earner each month and eliminating the maximum wage cap.
This change, without raising the level of benefits, would ease the burden of taxation on those in the absolute lowest economic position to a flat tax rate on all others equally.
Why is this important?
Support a Social Security Tax exemption on first $1,000 earned per month and eliminate the maximum cap.
Currently, Federal social insurance taxes are imposed equally on employers and employees, consisting of a tax of 6.2% of wages up to an annual wage maximum ($110,100 in 2012) for Social Security and a tax of 1.45% of all wages for Medicare.
This is the most regressive of all tax situations in the United States. It also causes many to circumvent the law and operate illegally. Recent modifications in the contract labor definition have helped but a more appropriate solution would be to exempt the first $1,000 of each wage earner each month and eliminate the cap.
This change, without raising the level of benefits, would ease the burden of taxation on those in the absolute lowest economic position to a flat tax rate on all others equally.
Computing the exemption monthly reduces the verification process that would be entailed if an employee changed employers mid year.
Those earning hundreds of thousands to millions per year would carry an appropriate level of fiscal responsibility for the nation. Regardless of whether this increases or decreases the overall revenue by $1 this constitutes a more logical allocation of taxation. In all likelihood, this will increase revenue to the Social Security Administration, and efforts need to be maintained to keep these funds from being commingled with other federal revenue sources.
Every powerful decision maker will be adversely affected by this measure, so support will be extremely limited unless it comes with resounding force from the grass roots level.
Please join me in signing this petition and making payroll taxes more equitable for all.
Currently, Federal social insurance taxes are imposed equally on employers and employees, consisting of a tax of 6.2% of wages up to an annual wage maximum ($110,100 in 2012) for Social Security and a tax of 1.45% of all wages for Medicare.
This is the most regressive of all tax situations in the United States. It also causes many to circumvent the law and operate illegally. Recent modifications in the contract labor definition have helped but a more appropriate solution would be to exempt the first $1,000 of each wage earner each month and eliminate the cap.
This change, without raising the level of benefits, would ease the burden of taxation on those in the absolute lowest economic position to a flat tax rate on all others equally.
Computing the exemption monthly reduces the verification process that would be entailed if an employee changed employers mid year.
Those earning hundreds of thousands to millions per year would carry an appropriate level of fiscal responsibility for the nation. Regardless of whether this increases or decreases the overall revenue by $1 this constitutes a more logical allocation of taxation. In all likelihood, this will increase revenue to the Social Security Administration, and efforts need to be maintained to keep these funds from being commingled with other federal revenue sources.
Every powerful decision maker will be adversely affected by this measure, so support will be extremely limited unless it comes with resounding force from the grass roots level.
Please join me in signing this petition and making payroll taxes more equitable for all.