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Article #438

Re: Incidence of payroll-deducted taxes

#438
From: George Greene
Date: Fri, 05 Jan 1996 00:00
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 : From: johne@mainelink.net (John E. Lavin)
 : In your rant, you made the folling statement:

   >ALL of the cost of ALL payroll-deducted taxes is paid by the
   >employEr.  ALL of it.  NONE of that money EVER goes to ANY employeE,
   >so since he never had it in the first place, how can he have paid it?

 : This is an absolutely false statement.  The costs incured by an empolyer for 
 : administration are fully tax deductible.

So what??

The WHOLE cost of EVERY business expense, the WHOLE wages paid
every employee, NOT just the administrative overhead portion,
is fully tax-deductible.  Corporations pay taxes on their
Profits, not their Revenues.

 :  Therefore the costs are borne by every American citizen, 
 :  every employee who pays taxes.

Idiot.
By that logic, every penny of wage paid to EVERYone has a
cost borne by the taxpayer, since salaries are a tax-deductible
expense of doing business.  Therfore, the costs of himself getting
paid are borne by every taxpayer.  You are chasing your own tail.

 : I would suggest that you try, yes try, to get your facts straight BEFORE you 
 : stick you foot in your mouth.

What I would suggest for you is nowhere NEAR that polite.
It is not just the administrative overhead that is deductible.
The WHOLE wage is deductible.  The mere fact that something is deductible
doesn't mean that only the taxpayer pays for it.  If the deductor is being
taxed at a marginal rate of 20%, then he pays 80% and taxpayers pay the
other 20.  In theory.  But in practice, when what is being deducted is
precisely what taxpayers ARE GETTING PAID, in the first place,  you can
hardly claim that their pocket is being picked to pay themSELVES.

NEXT!
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From: greeneg@jackson.cs.unc.edu (George Greene)
Subject: Re: Incidence of payroll-deducted taxes
Date: 1996/01/05
Message-ID: <GREENEG.96Jan5123033@jackson.cs.unc.edu>
X-Deja-AN: 134060171
references: <490s4o$eku@nexus.coast.net> <499sg8$elm@villa.fc.net>
organization: The University of North Carolina at Chapel Hill
newsgroups: mi.misc,alt.politics.usa.misc,alt.activism,talk.politics.misc,ca.politics,dc.politics,ne.politics,nj.politics,pa.politics,triangle.politics,misc.taxes,ny.politics