Why integrate FICA taxes into the Income tax? Eliminate the profusion of taxes, use a simple Tax outline to fully fund Social Security, and get rid of huge amounts of excess Paperwork. A simple law could state there is to be no FICA tax, only that a set amount($) quantity should be subtracted first from Individual Withholding to be paid into the Social Security Fund. Business Payment of Income Tax must first contribute an amount equal to all Employees' payments in the Social Security Fund, before the residue is transferred to the General Federal Budget. We cancel any need to talk about Employee contribution, Employer contribution, and lose need to find and fund individual deductions, exemptions, and exceptions to the Income Tax law itself.
Certain things must occur, though, before such alteration can be implemented. Social Security benefits cannot be allowed to vary, though contributions to the Social Security Fund continue on this course; variations in Benefits will lead to a snarl of Claims desiring higher preferment. A living monthly Benefit can be devised, and higher Beneficaries current can be grandfathered in by eliminating COLAs for this Group, until their benefits are in line with the Standard devised Benefit. Medicare and Medicade benefits can be limited to $30,000per year, but with adoption of unused Benefits of three previous years to a total limit of $120,000 per four year period.
The conflict between mandatory and variable taxation is eliminated, so the way is open to cut all form of tax loopholes from the tax system; the Tax Code has suddenly become a unified system, which does not need individual preferments. The basic Welfare function fulfills without red tape, and Employer contributions to Social Security becomes only a segment of their general tax picture, where their tax is owed no matter where directed. The Social Security Fund is funded adequately, and the umbilical cord between Business and tax loopholes can be cut for good. lgl
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