The gap between the US rich and every one else continues to widen sharply.
And it is becoming tougher and tougher for the many employed to live on the wages they receive.
Further, a clear forgotten group are the “Underemployed”, many of whom work two or three part-time jobs, for meager wages, just to survive. And so many of these Underemployed are recent college graduates, with substantial education debt.
My proposal here improves this horrible situation for 2012, and at the same time, stimulates consumer spending and US economic growth.
The 2% payroll tax holiday in 2011 was on the entire present Social Security base wages of $106,800. Thus, anyone making above $106,800 in 2011, received a payroll tax cut of 2% X $106,800, or $2,136 in 2011.
This 2% payroll tax holiday goes away in 2012.
My proposal here is to eliminate the entire 6.2% payroll taxes on the first $35,000 of wages in 2012. For someone making $106,800 or above, that will make them whole in 2012 with the payroll tax cut they received in 2011.
But this proposal really helps the working stiffs who are really struggling, particularly the neglected Underemployed.
To pay for this, I would reinstate the 6.2% payroll tax on all wages earned in 2012 above a certain level…..ideally wages above $1 million. The Feds will have to do the math to determine the exact minimum higher level of wages needed to apply the 6.2% payroll tax rate to in order to balance out in total the payroll tax cut for those making less than $106,800. My rough math says it could be a bit less than $1 million, but certainly more than $500,000.
