Greg Mankiw: Swap the Payroll Tax for a Gas Tax [View article]
The payroll tax is a regressive tax, because it's capped, so it hits the middle class much harder than the wealthy. But you're right that a gas tax would be even more regressive.
Many economists have actually suggested removing the cap on the payroll tax.
On Dec 14 08:50 AM Herbert Hoover wrote:
> This is a great idea! Implementing this will enable us to destroy > the middle class quickly instead of a little at a time. Let's see, > millionaires don't have to pay any taxes at all except at the gas > pump while those schmucks who temporarily have a job get to fill > up at 7 bucks a gallon. Nothing like a little regressive taxation > to turn the US into a true banana republic
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The payroll tax is a regressive tax, because it's capped, so it hits the middle class much harder than the wealthy. But you're right that a gas tax would be even more regressive.
Dec 14 11:00 am
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All Comments by Ralph F »Greg Mankiw: Swap the Payroll Tax for a Gas Tax [View article]
Many economists have actually suggested removing the cap on the payroll tax.
On Dec 14 08:50 AM Herbert Hoover wrote:
> This is a great idea! Implementing this will enable us to destroy
> the middle class quickly instead of a little at a time. Let's see,
> millionaires don't have to pay any taxes at all except at the gas
> pump while those schmucks who temporarily have a job get to fill
> up at 7 bucks a gallon. Nothing like a little regressive taxation
> to turn the US into a true banana republic