The payroll tax is a tax all Americans in the U.S. pay. This
particular tax is a name for the two taxes that are used to pay for Social
Security and Medicare part A. So how could they get rid of this tax like
so many Presidential Candidates in the current 2016 election have promised?
Basically, candidates like Ted Cruz, Trump
and former candidate Rubio would integrate it into the regular tax scheme.
Basically, you would be taxed at the current tax rate with no payroll tax
being taken out. This allows you to keep more money in your paycheck and
apparently could mean the elimination of tax returns as the payroll tax is
taken out first and causes issues math wise with the IRS. But what about
actually contributing to Social Security and Medicare part A? Well, the
IRS would take a percentage of what you pay to the government in taxes and pass
it on to Social Security and Medicare part A. This is much easier to do
as you are still contributing by you paying taxes with just the exception that
the IRS takes the money out of the total amount you pay in taxes rather it
being two separate (three technically) taxes.
However, if the Candidates really wanted
to do the right thing, they would eliminate the income tax with the payroll tax
and switch to a national sales tax. We would get to keep all our money,
but we get taxed when we buy stuff. The more you pay for something the
higher amount of taxes you pay per year. Under this system, just like the
income tax system, a portion of what you pay in taxes will go toward Social
Security and Medicare part A. The only difference is that you don't have
to file for income taxes any more, and illegals, criminals, foreign visitors
and others all contribute to Social Security and Medicare thus adding more
money to the system.
Conclusion: Obviously I want the income tax
gone, but I'll settle for just the payroll tax going away for now. Reason
being is that Social Security and Medicare will still get funded, and it saves
time and effort with respect to filing taxes. Eliminating taxes is a good
thing as it frees people up monetarily so they can buy the things they need (or
want). Still, I think a sales tax makes more sense, but this is just my
take on the issue and why I'll be voting Republican in the United States 2016
Presidential election.
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