Proposed tax breaks unfair
Three different tax breaks have been offered by one of our presidential candidates: no taxing tips, no taxing Social Security, and no taxing overtime. All are bad ideas. Whether it was the Pharaoh’s grain tax, taxes to the Romans, or the Kings of Europe, and today; no one likes to pay taxes.
No taxing of tip income. Can any other idea be more unfair? Two people have an income of $30,000. One person makes widgets and the other is a waitress. The widget worker pays taxes on all of the $30K. The waitress only pays on $20K, assuming she makes $10K in tips. This tax break was only offered to gain votes in the state of Nevada (a swing state), especially the area surrounding Las Vegas. Do you think this unfair tax break will ever make it through Congress?
No taxes on Social Security. Another political ploy to gain votes from those of us receiving Social Security. Started in 1939, it was designed so our fathers and mothers, and grandparents did not live their last years in poverty. In 1956 for women and then 1961 for men the law was changed to allow early retirement. Nice idea but for the next 20 years people gamed the system applying for early Social Security and continuing to work full time. Who would not like free money from the government? Come along to 1983 and Ronald Reagan, a Republican, and Republican Congress changed the law taxing Social Security if your non-Social Security income exceeded a given amount. This was done to limit the gaming. That is to say, if you are healthy enough to work, you’re healthy enough to pay your fair share and not get free money from the government.
No taxes on overtime. Again, grossly unfair. Two people have annual incomes of $75,000. One gets there by having a salary and is expected to work beyond 40 hours a week because “that’s the job.” Another individual is making super widgets and receives this income by working 40 hours a week, plus overtime. Worker two’s income is $50K and $25K by overtime. Both put in the overtime to justify their employer paying these amounts, but only one pays taxes on the entire income and the other does not. Clearly unfair and again only a political ploy to gain votes from a select group of people.
In a few weeks, we will have to vote for someone to manage our tax and Social Security laws. You will need to determine which candidate will make these laws fair for all of us and not just a few.
Bob Simon
Vulcan