The Unfairness and Stupidity of the Payroll Tax

A temporary payroll tax cut was allowed to expire recently, meaning that payroll taxes are now removing an extra 2% from everyone’s paychecks. Every corporation in the business of selling things to non-rich Americans is freaking out, because they expect their customers to cut back on spending now. The working class has just seen its take-home pay reduced by 2%; working class people will now have 2% less to spend on food, and clothes, and toilet paper, and everything else. It may be true that letting the payroll tax rise was foolish in the short term. It is definitely true that payroll taxes in general are, as constructed, a bad idea. More »