I would much rather listen to people whine than have to hear all of this self-important “We need to start a real discussion! We need to start finding solutions!” positivity followed by absolutely no such contribution to a discussion, no ideas, nothing. Okay, I’ll start. Reduce the payroll tax on both employees and employers, but by a greater percentage on employers because labor is a supply cost, meaning that over time the tax cut could help firms to resist inflationary pressures a little bit longer, ceteris paribus, which could serve to increase/sustain purchasing power in the long run. Offset the cuts by taxing certain fringe benefits, such as insurance plans, by a small amount to reduce the inflationary pressures that the substitution effects created by exempting fringe benefits from payroll taxes has put on the prices of those benefits. Again, over time the insurance companies and the like would have more concern with containing costs and would react accordingly, meaning that in the long run the cost of these fringe benefits would be unlikely to rise by the full proportion of the tax. Also, I don’t know why the Social Security burden has to be put entirely on wages. It’s called *Social* Security. Distribute the cost of funding it a little more widely, please. I support Greg Mankiw’s call for increased gasoline taxes, and I would hope that a share of the tax could go toward Social Security and Medicare to allow for payroll tax cuts.
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