Three years ago I suggested a payroll tax holiday for both employees and employers until the economy healed. After several years, Congress agreed to a partial reduction.
After the halfway measures and dribbled reductions, Congress faces the choice of extending and expanding the payroll tax holiday.
Now we face two problems: Get the economy going, and reduce or eliminate the federal deficit.
In a moment of serendipity, an answer to both deficit and equity flashed into my mind: Take the lid off of payroll taxable income.
Think about it; no limits on the taxes paid on million dollar salaries and bonuses. Both the employees and the employers would be paying the same rate on income as every other worker in America. This would amount to a 6%+ increase in both individual and corporate taxes paid on compensation. What would 12% of the income not currently covered by FICA equal? Enough.
Who would this affect? Not the minimum wage or lower paid employees (they already pay this on all their wages.). Those who Occupy Wall Street and seemingly every average income person in the country would get the equity they seek.
Congress can give partial payroll tax holidays to the average worker by stipulating the amount of income exempted. The income above the stipulated amount would still be taxed.
Think about it. Call, email, write, and vote for the solution to both equity and deficits in America.