To: The United States House of Representatives
Revise American Taxes
Our nation must find a way to derive income from all
business transactions and not mainly from the earnings
of American workers. Things automated and imported included
business transactions and not mainly from the earnings
of American workers. Things automated and imported included
Why is this important?
Revise American Taxes
Antiquated Taxes
Our income and Social Security type taxes were
Instituted many decades ago when the world was
A very different place. They both are mainly taxes on
American Labor and are a poor way to raise revenue
in our present highly automated and global economy.
Our nation must find a way to derive income from all
business transactions and not mainly from the earnings
of American workers.
Ralph R. Layman
6210 Mineral Point RD. #511
Madison, WI 53705
608-230-3770
[email protected]
* **********************************
Thoughts to Consider?
1. Unemployment and the deficit are two of our
Nation’s biggest problems. They are related.
2. Most of our nation’s income comes from taxes on
American labor. About 30% comes from Social Security type
Taxes and most of the rest comes from income taxes on the
Salaries and wages of American workers.
3 To pay an employee $100, an employer must pay about
7% in SS taxes and also Employment compensation and
Workman’ compensation. It costs the employer about $110
And even more if health insurance is provided.
The employee gets probably less that $80 in take home pay.
As SS and Income taxes are deducted before he is paid.
4 The employer must come up with the total amount of
$110 to have the employee. It is an expense to the employer.
And an incentive not to hire employees and to pay less.
5. A Business must have an income greater than expenses in
order to survive. Governmental agencies and non=profits
need an income equal to expenses.
6 All of these taxes must be recovered by adding the expense
to the cost of everything produced by American labor. Our
taxes are embedded in the cost of all goods and services
produced by American labor.
7. Hospitals, nursing homes, school districts, local governments
state governments, small businesses are all labor intensive
and this is where our tax money comes from. Naturally the
expenses are passed on to consumers of these services.
8. Imports, out-sourced labor, Advertising, Sports events, Cell phones,
Cable TV. banking, investments and many other profitable endeavors
that are not labor intensive do not contribute as much.
9. Our budget and deficit problems should be resolved by finding a
way to garner tax income from profitable businesses that are
not labor intensive.
10. Our Social Security and income taxes were initiated many decades ago.
back then few things were imported and most all things produced were labor
Intensive. This is not the case anymore: we should adapt to our new conditions. How simple life could be without the IRS!
11. If Republicans could get over their hatred of big government and Democrats could forget their obsession with taxing the rich, maybe we could get something done.
Spending is probably less than half our problem. It is not who pays the taxes, but where the money comes from that is important.
12. Think of our nation as one big shopping mall that we all own. Whenever anything is sold in this mall a percentage of the selling price should go to our mall. This should include labor as well as everything else
13. Our nation is incredibly rich. Years ago a two bedroom apartment with the bathroom down the all was not uncommon. Today, 2 or 3 bathrooms, 3 or 4 bedrooms, a 2 car garage and an SUV in the driveway is not unusual, Think of the money that is spent on luxury foods, designer clothes and athletic events. Why can’t some of this money be channeled into our infrastructure and the well being of our people.
Ralph R. Layman
6210 Mineral Point RD. #511
Madison, WI 53705
608-230-3770
[email protected]
Antiquated Taxes
Our income and Social Security type taxes were
Instituted many decades ago when the world was
A very different place. They both are mainly taxes on
American Labor and are a poor way to raise revenue
in our present highly automated and global economy.
Our nation must find a way to derive income from all
business transactions and not mainly from the earnings
of American workers.
Ralph R. Layman
6210 Mineral Point RD. #511
Madison, WI 53705
608-230-3770
[email protected]
* **********************************
Thoughts to Consider?
1. Unemployment and the deficit are two of our
Nation’s biggest problems. They are related.
2. Most of our nation’s income comes from taxes on
American labor. About 30% comes from Social Security type
Taxes and most of the rest comes from income taxes on the
Salaries and wages of American workers.
3 To pay an employee $100, an employer must pay about
7% in SS taxes and also Employment compensation and
Workman’ compensation. It costs the employer about $110
And even more if health insurance is provided.
The employee gets probably less that $80 in take home pay.
As SS and Income taxes are deducted before he is paid.
4 The employer must come up with the total amount of
$110 to have the employee. It is an expense to the employer.
And an incentive not to hire employees and to pay less.
5. A Business must have an income greater than expenses in
order to survive. Governmental agencies and non=profits
need an income equal to expenses.
6 All of these taxes must be recovered by adding the expense
to the cost of everything produced by American labor. Our
taxes are embedded in the cost of all goods and services
produced by American labor.
7. Hospitals, nursing homes, school districts, local governments
state governments, small businesses are all labor intensive
and this is where our tax money comes from. Naturally the
expenses are passed on to consumers of these services.
8. Imports, out-sourced labor, Advertising, Sports events, Cell phones,
Cable TV. banking, investments and many other profitable endeavors
that are not labor intensive do not contribute as much.
9. Our budget and deficit problems should be resolved by finding a
way to garner tax income from profitable businesses that are
not labor intensive.
10. Our Social Security and income taxes were initiated many decades ago.
back then few things were imported and most all things produced were labor
Intensive. This is not the case anymore: we should adapt to our new conditions. How simple life could be without the IRS!
11. If Republicans could get over their hatred of big government and Democrats could forget their obsession with taxing the rich, maybe we could get something done.
Spending is probably less than half our problem. It is not who pays the taxes, but where the money comes from that is important.
12. Think of our nation as one big shopping mall that we all own. Whenever anything is sold in this mall a percentage of the selling price should go to our mall. This should include labor as well as everything else
13. Our nation is incredibly rich. Years ago a two bedroom apartment with the bathroom down the all was not uncommon. Today, 2 or 3 bathrooms, 3 or 4 bedrooms, a 2 car garage and an SUV in the driveway is not unusual, Think of the money that is spent on luxury foods, designer clothes and athletic events. Why can’t some of this money be channeled into our infrastructure and the well being of our people.
Ralph R. Layman
6210 Mineral Point RD. #511
Madison, WI 53705
608-230-3770
[email protected]