I have made the followng uggestions in letters to representatives Paul Tonko (D) and Chris Gibson(R) whom I hve had several dscussions with over the past 2 years.
Both of these congressman have expressed interest i my previou sugetion to eliminate the earnings social secnurity tax as a means to preserve the SS trus fund.
Inasmuch as entitlement programs are an issue in the current
discussions aking place in washington. I have clarified my suggestion that this could be ossable solution to the dispute over increasing income tax rates on taxpayers earninbg mor thn $150,000. The eliminationof the earnings capin SS tax would not be increasing icome tasx rates but would require those more affluent workers to continue to contribute to the SS program throughout their working life which would have the effect of leveling the playing field with those middle class workers who make SS tax contribtions on every dollar of their working life. In as much as the employers matching tax contribution is a deductable business expense which reduces the income subject to income tax, the removal of that earnings tax this may be somewhat counter productive, I have suggested that the employers share be capped at $250,000 while the employees sharewould be continued throughout their working life. This would not be a new tax or inincrease in tax, itwould imply put be an extensionof the emplolyees tax .
Both Political Party's express a concern for the middle class txpayer losing some of the tax credits inclded in the "Bush Tax" some sensible relief could be provided to the retired citizens through the taxcing of Social Security benifits recieved using a tax threshold of $20,000/$32,000 of total income and which I determined to increase their tax liablity b 45% to 52% by recomputing thier tax liability without the Social security income being taxed My srudy was for Taxpayers in a $20,000-$85.000 income range. My saggestion would be to raise the tax earnings thresholds to $225,000-$250,000 which sould satisfy the democrat standard amount.
I have also been suggesting to my 2 Represantives a change in the Corporate foriegn tax credit which allowas international operatioins to decuct all foriegn taxes pad from their U S Income tax While only allowing taxes paid to states
and localities in this country t5 be treated as ordinary expenses reducing the taxable income. Inasmuch as I contend that these taxes paid to foriegn countries is an inentive for U S Corporations to move production facilities overseas These companys can also avoid import tariffs by shipping partially completed back to the U S. I feel tyhat this is providing other country's with an unfair competive advantage
I would therefor encourage te party members to communicate with their mrmbers of congress an make specific suggestions when ever those suggestions mak sense to you.
I have also found that your congrssmen and congresswomen are mor receptive to constituants suggestions than senators as many senators are enamored of their own importance and are less inclined to see the common sense of your suggestions unless your suggestions are accompanied with a large campaign contbution.