Posted by Bill Leonard at 12:00 am on Feb 01, 2010 1 Comment
As far as the “jobs, jobs, jobs” mantra, we can spend with
borrowed money, which is not popular with voters, or we can look at
what is right in front of our noses. To stop the hemorrhaging
of jobs, the obvious thing for government to do is lower the cost
of labor by cutting back on payroll taxes paid by employers and
workers.
I plugged in data for an imaginary California worker making
$45,000 a year who is single with no deductions and here is how it
breaks out:
Gross pay (per
month):
$3,750
Federal income
tax:
$543
FICA (social
security):
$232.50
Medicare:
$54.38
So already out of a gross pay of $3,750, this hypothetical
Californian has over $829 taken out by the federal government
before he gets a dime. But we need to add California’s
payroll taxes.
California has four State payroll taxes which are administered
by the Employment Development Department (EDD). They are
Unemployment Insurance and Employment Training Tax, which are
employer contributions, and State Disability Insurance (SDI) and
Personal Income Tax… Read More