Posted: May 23, 2020 12:01 AM
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As Americans suffer the coronavirus pandemic, the economy is in a precarious state and unemployment has reached levels not seen since the Great Depression. It is a time to reconsider some policies relating to taxation and labor that will alleviate the effects of the disruption to the economy.
What changes in national policy are needed after the deficiencies revealed by the coronavirus? Here are some suggestions:
1. Much of the relief given has redounded to the benefit of the already prosperous. Some close to the administration have suggested that the cure for this is to be found by relieving workers of the payroll tax, at least temporarily. The 7.65% social security and medicare taxes, applying to both employers and employees, are effectively a 15.3% tax on wages. When the taxes were much lower than they now are, Senator Robert Taft taunted the Democrats by saying that whenever they wanted to raise serious money, they resorted to regressive payroll or production taxes. Repeal of the taxes is not