MINOT, N.D. — President Donald Trump wants to “terminate the payroll tax” permanently.
This is not a sane proposal.
Our federal tax code is byzantine, and I don’t blame you if you’re not exactly certain what the term “payroll tax” means for you.
If you get a paycheck, you and your employer are each paying 6.2% of your income to fund Social Security.
Another 1.45% gets paid to Medicare.
People with higher incomes pay an additional 0.9%.
In the last fiscal year, these taxes represented $1.2 trillion in revenues for the feds, or about 36% of all federal revenues.
How could we make that large a tax cut work?