Would eliminating all taxes on wages and salaries make it easier to reduce hours of labor?
One thing I have remarked on in my writings before is the tendency of Democraps to demonize the GOP for cutting taxes on the rich. It isn’t that I defend this practice by the GOP, but it seems to me that if the Democraps were so interested in protecting the worker from an undue one-sided tax code, they might push for eliminating taxes on income earned through work, instead of whining about the rich not paying their “fair share”.
How would my idea work?
A lot of people support the idea of a universal basic income, which I oppose. But one variant of this idea proposes a negative income tax on those below a certain income. If this idea were extended to include elimination of taxes on all income earned through labor, it would amount to a zero income tax on wages and salaries. (This would have to include elimination of all FICA tax and all taxes on consumption, like state and local sales taxes.)
Eliminating taxes on wages and salaries would end the debate over the rich paying their fair share, but it would do more than this.
According to the Motley Fool, American workers pay about 32 percent of their income in taxes to federal, state and local government — and this does not include property tax, vehicle tax, sales tax, etc. Which means just by excluding worker income from taxes could result in a 30-40 percent increase in their real (after-tax) income.
Interesting, eliminating all taxes on wages and salaries would be more than enough to pay for a reduction of work week from the present 40 hours to 28 hours — a work week of just four days, 7 hours for every worker.
(published on Reddit r/antiwork)