Dear Mr. President:
As thousands upon thousands of us are being thrown out of our jobs, we are faced with an economy that isn't generating very many new opportunities. One alternative is for us to try and bootstrap ourselves by doing whatever it takes to get by.
We may be able to string together enough small jobs and projects to survive this period through "self-employment."
There is something you could do to help us along. Right now, we all have to pay self-employment tax on our freelance earnings, which at the bottom rungs of the employment pyramid seems downright unfair.
If a cleaning lady makes $20,000 a year through her enterprise and hard work, why should she have to pay any of it in taxes? I propose that the first $40,000 or so in self-employed income be exempt from any taxes, at least for the duration of this recession.
This exemption could be structured in any number of ways to reduce any negative impacts it might have on government tax revenues. The elimination of these taxes should reduce paperwork and labor costs at the IRS. The upper end of self-employed income earners ($250,000+) could probably afford to pay a higher tax rate than they do now.
The benefit also might be structured as a "loan" from our future tax obligations, when we all get back on our collective feet again.
As an additional request, I believe unemployment benefits, which are of course awarded through the state, should also be exempt from federal income tax. This is not employed income but unemployed sustenance. California is no doubt one of the most generous states in these benefits, but the most one can receive here is $450/week. (Housing costs are such that that barely covers most people's rent.)
I'd just like to see the most oppressive taxes that so unfairly punish working people in society lifted for a while. We all just need a break.
Thanks for listening.
-- DW
1 comment:
How about ANY employee that makes $40k or less get a one year reprieve from paying taxes?
After all deductions from my check, I bring home 43% of my gross! SSI tax I don't mind paying (my father is a boomer and the grandparents earned it!). Medicare, sure, (grandparents can't afford all the 'scrips they needs). Child support, no problem (my duty and responsibility!). Income tax...well, really the only way I would VOLUNTARILY give up that money is if the gub'ment gave me a personal, itemized list of where it is spent AND the discretion to spend it where I SEE FIT!
On 43% of my gross take home (and state laws being the way they are AND insurance companies being as corrupt as they are) I cannot even cover myself with medical insurance.
Man, my life would be SO much easier and financially lucrative if I was an unemployed, female, single, illegal alien! (sarcasm intended)
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