More retirees, longer life expectancy, larger benefits, and fewer workers - these trends have meant substantial increases in the payroll tax. Since the social security program began, the payroll tax has increased more than 500 percent.
In 2010 the U.S. will have a payroll tax rate increase, an estate tax increase, and income tax increases. There's also a tax increase coming in 2010 on carried interest. This rate will rise from its current level of 15 percent to 35 percent, and then it will rise again in 2011.
I would give relief from the first $10,000 of the payroll tax. I would allow small businesses to accelerate depreciation so they would have an incentive to buy now rather than defer. I would also give to the states $40 billion of relief.
It is all very well and it sounds very seductive to say we are going to have harmonisation of regulations, but for example the way that funds are distributed around the states these days, you are positively penalised if you actually want to have say a lower payroll tax or sort of conditions.
I've never supported a wage tax and I've never supported a payroll tax.
The payroll tax is affecting sales. It's causing sales declines.
It has to have a payroll tax that's dedicated to Social Security. The Social Security tax has been very successful over the years in raising almost all of our elderly citizens out of poverty.
The clearest way to cut some of this fiscal drag would be to extend the current payroll tax holiday and increase it - as proposed by President Barack Obama. This would cut the fiscal drag by almost half.