FICA’s our most regressive federal tax. FICA’s task is to fund the U.S. Social Security Administration’s retirement, long- term disability and Medicare programs. Reduction of these entitlements would be significantly net detrimental to both our economy and to our society.
There is no logical relationship between employment and medical need. Although an argument could be made for funding employee’s retirement and non-employment related long- term disability entirely from their wages, it is not financially feasible to do so. (Workman’s compensation should continue to be funded primarily from workman’s compensation taxes paid by employees).
Employers portions of FICA taxes paid are passed on within prices of all goods and services paid by all, (including USA wage earners and their families). If USA sales transactions subject to a general sales tax is twice the amount of employers’ payrolls subject to the 7.65%, then their revenue is currently the equivalent of a of a (1/2)(0.0765 / 1.0765) = (1/2)(0.071142) = 0.035571 general sales tax.
If USA sales transactions subject to a general sales tax is 1/3 the amount of USA payrolls, then their revenue is currently the equivalent of a (1/3)(0.071) = 0.02333 general sales tax.
Currently USA employees directly pay 7.65 % percent of their wages and due to the FICA imbedded within the prices of their expenditures they directly and indirectly pay the equivalent of totals somewhat within 9.447% to 10.67% of their expenditures.
I’m an advocate that FICA's entire portion of revenue earmarked for Medicare and half of the social security retirement’s portions of FICA revenue all be replaced with revenues from a general federal sales tax.
If we replaced both 4.655% of payroll FICA taxes upon payrolls from both employers and employees FICA taxes with a federal general sales tax of 4.55%, there would be an insignificant reduction of direct and indirect FICA taxes paid by wage and salary earning families, lesser penalty upon employers that choose to increase their payrolls and somewhat increasing tax revenues that fund Social Security and Medicare.
This is not an entire solution but it is a start to remedying FICA’s revenue shortfall, reducing the regressive character of our FICA payroll tax, retaining the Social Security’s and Medicare’s full benefits and reducing the shortfall of their funding.
Respectfully, Supposn
There is no logical relationship between employment and medical need. Although an argument could be made for funding employee’s retirement and non-employment related long- term disability entirely from their wages, it is not financially feasible to do so. (Workman’s compensation should continue to be funded primarily from workman’s compensation taxes paid by employees).
Employers portions of FICA taxes paid are passed on within prices of all goods and services paid by all, (including USA wage earners and their families). If USA sales transactions subject to a general sales tax is twice the amount of employers’ payrolls subject to the 7.65%, then their revenue is currently the equivalent of a of a (1/2)(0.0765 / 1.0765) = (1/2)(0.071142) = 0.035571 general sales tax.
If USA sales transactions subject to a general sales tax is 1/3 the amount of USA payrolls, then their revenue is currently the equivalent of a (1/3)(0.071) = 0.02333 general sales tax.
Currently USA employees directly pay 7.65 % percent of their wages and due to the FICA imbedded within the prices of their expenditures they directly and indirectly pay the equivalent of totals somewhat within 9.447% to 10.67% of their expenditures.
I’m an advocate that FICA's entire portion of revenue earmarked for Medicare and half of the social security retirement’s portions of FICA revenue all be replaced with revenues from a general federal sales tax.
If we replaced both 4.655% of payroll FICA taxes upon payrolls from both employers and employees FICA taxes with a federal general sales tax of 4.55%, there would be an insignificant reduction of direct and indirect FICA taxes paid by wage and salary earning families, lesser penalty upon employers that choose to increase their payrolls and somewhat increasing tax revenues that fund Social Security and Medicare.
This is not an entire solution but it is a start to remedying FICA’s revenue shortfall, reducing the regressive character of our FICA payroll tax, retaining the Social Security’s and Medicare’s full benefits and reducing the shortfall of their funding.
Respectfully, Supposn