[VodsNittats]

the vast majority?

[no02rSx2]

I probably won't even notice the $1000, that's such chump change. Won't change my spending habits.

[OnerePeepsy]

Honestly they should do that in the US. That would instantly put money in the hands of people who would spend it (poor people) and also give them an incentive to get a job instead of sit on unemployment.

[KellyMP]

that's a lot. in greece you dont pay anything for income up to 13k euro ($17-18k) That's a pretty good deal.

[Cofeeman]

http://uk.reuters.com/article/enviro...50759Y20090108

question: how many from that 95% pay more than 1000$ in taxes?

Most?

My wife and I are somewhere near the 95th percentile range, and we pay ~13000$ in US federal income taxes a year.

In order to pay 1000$ in federal income taxes, a married couple would have to earn 28000$ a year. A married couple with two children would have to earn 35000$ a year.

For families in the US, 28000$ per annum is the 27th percentile. 35000$ per annum is the 34th percentile

[popandopulus]

that's a lot. in greece you dont pay anything for income up to 13k euro ($17-18k)

You don't have any payroll taxes? FICA is a payroll tax, not an income tax; we're about at the same point (I forget the exact amount, it's between $14k and $18k I think) where you pay no income taxes on income. As KH notes, you have to make over $28k as a couple (or a bit more than half as an individual, I believe) to pay significant taxes.

[Maryjasmine]

So if they eliminated FICA taxes entirely, my salary would go up by the entire employer contribution amount??

No. This is a statement about equilibrium wage, not what would happen in the transition period (which in the labour market can be fairly long).

[topcasinobonua]

I wonder whether that is more true at the lower wage levels than at the mid to higher , or the other way around. For example, a retail store is going to pay say $6.50 an hour no matter what (affected by minimum wage, basically, in this state) but it will limit hours based on what it can afford; in a good climate it might spend as many hours as it can reasonably use (and thus FICA isn't affecting employees significantly), but in a bad climate it will reduce hours drastically, based on the cost to the company being higher than the return investment, meaning FICA is being passed to the employee basically in the form of reduced hours.

The avergae retail employees' total compensation is nowhere near at minimum wage. Only very new hires will be paid minimum wage. I also don't have any idea what the **** you mean by saying "thus FICA isn't affecting employees significantly".

Or the other way around, for all I know (but, from my retail background, I believe it is more likely the former - in a good climate they do not focus on hours significantly). ???

[BliliBoopsy]

a) It is good from a deflationary perspective
b) Since the US is nearing deflation such a program is money-financed, not real debt-financed. In this sense it is a bit of a free lunch.
c) I have my doubts that it will do anything at all in terms of breaking a recessionary spiral, as I have yet to see evidence of similar programs working. Even vigorous proponents of it are claiming that the fiscal multiplier is near 1
d) I might not have to pay for it at all, so I'm all in favour of it.

[VIAGRA-VIAGRA]

Tax regime arbitrage. Ha ha.

[feedcomnet]

I haven't seen our W2s yet, but at a guess we're getting a total of ~4000$ back.

[plaiskegizils]

There's no reason for me to be Ricardian (again, tax arbitrage haha) but I am carrying a credit card balance right now and will be happy to pay it off with my tax refund (no risk return of 11% per annum) after buying a Wii and an Ideapad S10

[Jasonstawnosaa]

Intertemporally substitute income. Drop out of school.