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The Tea Party is for Taxing That Ass

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  • Strongly Liberal Democrat
    Dallas, TX
    Are you sure you want to delete this post?
    The "Tea" in Tea Party supposedly stands for "Taxed Enough Already." Well, I agree. Working people are overtaxed. That's why I support a Full FICA tax suspension. That's Tea Party. It would be the largest tax cut in American history - and from the bottom up.

    Federal taxes regulate demand (our spending). They don't pay for anything. Prefunding SSI is like starving yourself today to save perishable food in the future. It doesn't make economic sense and FDR understood that. The FICA tax is to provide SSI recipients with a moral, political, and statutory legal claim (although not a constitutional property right) to SSI benefits. FDR called it a "useful fiction" to protect his Social Security from politicians that would remove SSI benefits. FICA is not so useful anymore. Americans overwhelming support SSI & Medicare. FICA is especially procyclical (rising when the economy picks up, falling when it contracts). This link shows that in 2007-2008 FICA tax revenue collections nearly exceeded revenues from the regular income tax, which is nominally progressive. That's a recipe for fiscal drag. FICA is a tax that promotes recessions and adds to the volatility of the business cycle.

    Unfortunately, the Tea Party erroneously believes that 47% of people don't pay taxes. Everyone who works pays regressive FICA taxes, that's 15% of incomes up to $113k. While nominally split between employer and employee, the 'pass thru' cost effects of the employer side of the tax fall on the employee.

    Moreover, the Tea Party believes in cutting government spending, which is the same thing as a TAX INCREASE on the non-government. They are particular incensed by government spending that benefits the 99%. So in reality the Tea Party is about TAXING THAT ASS. Effectively, they want higher taxes on working people and lower taxes on wealthy people.

    Also, they say they are all about personal responsibility, so am I. Involuntary unemployment is a direct consequence of government not spending enough for us to pay our taxes and save what we try to save. Businesses only hire if it is profitable, and it is only profitable if the sales are there to justify hiring. So it's the job of the government to make sure that its net-spending is at a level sufficient to keep the workforce fully employed. Americans overwhelming want to take responsibility for their lives; responsible government is about making sure that is possible.

    Last, paying down the government debt is the equivalent of confiscating non-government finanical assets. Government deficit=non government surplus. Government debt is the equity that supports the private credit structure. So these people have everything backwards, and they don't want to listen either.

    Is the Tea Party even Tea Party? Not by a mile. These are people who lost an election and can't stop crying about it.

    I'm for lower taxes per size of government, full employment, and government that serves public purpose.!