Robert Reich has recently suggested a way that we can pull the economy out of what looks like a double dip recession, and to create jobs.
He thinks that we should instate a Payroll Tax Cut by eliminating payroll taxes on the first $20,000 of income, and making up the revenue loss by applying payroll taxes to incomes above $250,000.
"This would give the economy an immediate boost by adding to the paychecks of just about every working American. 80 percent of Americans pay more in payroll taxes than they do in income taxes. And because lower-income people would get most of the benefit, it's likely to be spent."
"It would also give employers an extra incentive to hire because they'd save on their share of the payroll tax. And most of the incentive would be directed toward hiring lower-income workers -- who have taken the biggest hit on jobs and pay during the recession."
"It wouldn't add to the deficit. Lost revenues would be made up by applying payroll taxes to income exceeding $250,000. This is certainly fair. As it is now, the Social Security payroll tax doesn't apply to any income over $106,000. Having the tax kick in again at $250,000 would draw on the top 3 percent of earners." " Income inequality has become so grotesque that the top 3 percent of households rake in almost a third of total income (the highest portion since 1928)."
http://www.huffingtonpost.com/robert-rei...