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Editor, News-Register:
We should eliminate FICA taxes. FICA tax encumbers production because it makes the more expensive!
When you purchase a widget for $100 the cost includes recovery of the 7.5% FICA that the retailer must pay to Uncle Sam for his total payroll. It also includes recovery of FICA paid for employees of the maker of the widget charged to the retailer. There may also be a wholesaler FICA involved. It includes recovery of FICA paid by trucking company for their drivers that delivered the widget to the retailer.
All those companies who sold parts to the maker of the widget had to pay FICA to Uncle for their employees. Electric companies paid FICA for their employees. All those FICA taxes are business expenses recovered from the $100 that you spend for the widget! There are $24 in FICA costs that must be recovered from that $100 you paid for the widget. If we eliminate FICA tax, that means that the retailer could sell you the widget for $76 and still make the same profit.
So WOW! You get your paycheck with no FICA withholding and you get a 24% reduction in the cost of your purchases. You pay $76 for the widget instead of $100. That will significantly increase sale of widgets. It will require more jobs to make more widgets. It will require more trucks and more truck drivers to deliver them. This new economy will provide employment increases and Uncle Sam gets enormous revenue increases.
Don Krahel
St. Clairsville