SOCIAL_INS: Re: Local Currency Article

[Mbindnerdc@aol.com]

In a message dated 12/10/2002 4:31:43 PM Eastern Standard Time, "Norman G. 
Kurland" <thirdway@cesj.org> writes:

>Mike,
>
>What's wrong with the total system proposed in  How to Save the Social 
>Security System ?  It is designed to radically reduce taxes of working people.
>
>Norm
>

Norm,

Let me repeat my critiques:

A broad based, rather than an employment based, stock ownership plan leaves 
whatever workers are left doing notn-automated jobs as wage slaves rather than 
working parnters, since non-workers will reap the profits of both capital and 
labor (unless you include a specific requirement that profits from labor be 
distributed to the workers - in which case my objection vanishes).  

The flat tax you propose undertaxes those with more of an ability to pay 
(although I agree that currently FICA is even more flagrant of a violation of 
progressivity, which is why I am proposing fixing it by eliminating the cap and 
equalizing the employer contribution). The economic class which includes 
bondholders must be taxed more heavily to keep these funds circulating in the 
economy.

Having an exemption for family size with subsidies available for low income 
earners still carries the stigma of welfare.  The alternative I propose, 
whereby firms receive a tax credit for paying a living wage based on family 
size does not carry this stigma.

Mike



>Mbindnerdc@aol.com wrote:
>
>> Norm,
>>
>> That is exactly the effect of higher social security taxes, which is why I 
>would lower them and divert the difference to employee-ownership.  Giving 
>employees a significant stake will allow them to demand a just share of the 
>profits due to them do to their labor, as well as receiving profits as owners 
>of capital (as well as capital homesteading, no reason not to do both).
>>
>> Mike
>>

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