Posted 8 years ago on Oct. 21, 2011, 11:55 p.m. EST by jomojo
This content is user submitted and not an official statement
I suggest an employee recieve 100% of his wages.
The employer, has no reason to be our tax collector, except that law requires it.
The employer has no reason to be in the healthcare business, except that its discount insurance program can prevent an employee from quitting the company.
Benefit packages are used to lure and keep the best employees.
The production of a product or services is what the employer should be spending their work time on. Witholding bookeeping requires expertise, planning, and time. The penalties are great if done wrong.
By paying the employees a check with 100% of their compensation, the employer's organization, especially "mom & pop" companies, could eliminate a considerable burden.
Eliminate sales tax collection by retailers. (If necessary have it automatically paid, electronically from the buyer's bank card, used for the purchase).
The goverment would have to oversee the tax payment when the payroll check was deposited into the person's account.
The other benefits desired by the employee could be offered as a cafeteria plan. Insurance, retirement plan, education savings, charities, christmas club, etc could be opted into. (except where mandated, such as fed, state and local tax, which could vary according to salary and plan chosen) These purchases would be deducted from the deposit, and the automatic payments forwarded.
Why would this be difficult? It would be opposed by insurance, tax prep corporations, and of course the corporate employers, who stand to lose many employees, without their offering superior benefit packages. Everyone would be taxed on their income. It would require legislation.
There would be opposition. Politicans would show their allegiances. Some large organizations would have layoffs. (perhaps a retraining package could be provided for their employees)
Without being responsible for the tax witholding, insurance premiums and accounting associated with them, a person would be more able to quit the job they have and start a company. They would not lose their benefits and health insurance. They could start a company, knowing they can hire employees who can provide their own benefit package. All employees would have to be lured with better pay and a more desirable job.
As an employer they would be required to pay themself as an employee, with the same cafeteria plan. Reinvestment into the business would be after these taxes.
A 5% tax on cash, (if currency is required), of amount over $100 per week taken from banks. (to deter black markets)
The advantage of this plan would be an exponential growth in the number of new business owners. The gross national product would explode. Employees would be in demand. Cooperatives would benefit.
This is basically a plan to grow our economy out of its depression, it's not about the morality of tax, money, wealth, or world trade. It does enhance the ability of anyone to try using their own ability to make a living, on a more level playing field.
Hell, I'd try a business under the above, (admittedly half-baked), conditions. Most new businesses fail, and many operate without health insurance, and that's ok with corporations, and it keeps the tax folks busy.
Thanks for your consideration.