Tax System

[billynomates]

Then there is the perverse incentive created by a badly structured tax system.

A small-business owner in New Jersey took to the op-ed pages of The Wall Street Journal to point out that it costs him $74,000 to pay an employee $59,000 a year, when taxes and benefits are factored in. But when the employee pays her taxes, she is left with only $44,000. So the gap between his cost of hiring and her incentive to work is substantial. Not a prescription for full employment.

Doug you'll know more, this true?

[bluffmanxx]

i read that article, and it seemed pretty accurate to me.

consider that the employer must match social security and medicare payments with the employee. then there are the health care costs. the cost of compliance with endless government regulations. on and on. also don't forget that once that employee takes home the $44,000 the taxes continue - sales tax, property tax, all sorts of fees. i'd be surprised if there is more than $30,000 left after all that!!

oddly, in the comments that followed some made personal attacks aimed at the guy and his "failing" business. seems that person wanted to shift the focus from economic reality to attacking the messenger, something that has become standard practice in the media and washington. remember "joe the plumber" and how the media dug into his background to find dirt instead of dealing with his message?? regular guys who speak out get attacked, but the media can't be bothered to do their homework on obama. must be some good kool-aid!!

[skyguy2007]

Several years ago I tracked every penny spent on taxes for a month, gas, food, phone, internet, cell, electric, federal, state and any other goods or services purchased. It was just shy of 70% of my gross income.

[bluffmanxx]

Several years ago I tracked every penny spent on taxes for a month, gas, food, phone, internet, cell, electric, federal, state and any other goods or services purchased. It was just shy of 70% of my gross income.

and yet the government "needs" more!!

hey, i have an idea, why don't we all stop working and let the government pay us, provide health care, housing, education, food, transportation. only question is, who do they "enslave" to provide all of that??

[Niccivan]

Several years ago I tracked every penny spent on taxes for a month, gas, food, phone, internet, cell, electric, federal, state and any other goods or services purchased. It was just shy of 70% of my gross income.

Yeah.... it's pretty sad when I pay 19.99 for a landline telephone, and an additional $24 in state and federal taxes (along with whatever else they want to charge me) on top of it.

[skyguy2007]

Hard to think some of the tax for phones was due to the Spanish-American war in the late 1800's, once the government gets their hands on something it's very hard for them to give it up.

Hanging up the phone tax. - Free Online Library