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THURSDAY, DECEMBER 5, 2002
THE WANDERING TAX PRO

HAPPY 100th BIRTHDAY TO SENATOR STROM THURMOND!
 
PAYROLL TAX HOLIDAY
 
Once again the idea of a Payroll Tax Holiday has surfaced.  This time it was presented by Democratic presidential candidate wannabe Senator John F. Kerry of Massachusetts in a speech at Cleveland's City Club.
 
Kerry has proposed that the 7.65% FICA payroll tax (6.2% for Social Security and 1.45% for Medicare) be suspended on the first $10,000.00 of wages.
 
This would put up to $765.00 in the pocket of every employed taxpayer.  Two-earner families and self-employed individuals (who pay a 15.3% FICA equivalent "self-employment tax") would receive up to $1,530.00 in tax savings.
 
Since Social Security withholding will stop at wages of $87,000.00 for 2003, higher-income taxpayers would realize only $145.00 in savings from a payroll tax holiday.
 
The business community would also get a substantial economic stimulus under this proposal, as employers must match the FICA tax withheld from employees.
 
A payroll tax holiday is far superior to repeating the tax rebate fiasco of 2001, as the cost to the IRS would be "0" (sending out the rebate notices and checks cost a fortune), and there would be no cause for confusion on the 1040.
 
According to Kerry, the payroll tax holiday would cost $100 Billion, which would come out of "general revenue" and not Social Security funds.
 
What do you think of this idea?
 
HOLIDAY SHIPPING TIPS
 
Check out this article from Bankrate.com on "Seven Tips To Ship The Perfect Package".
 
 
THE HERD SHOT 'ROUND THE WORLD
 
I couldn't resist clicking on this headline in the "Oddly Enough" section on the Iwon Today page at www.iwon.com.
 
It appears that China Southern Airlines Co Ltd recently flew 200 Canadian cows aboard a Boeing 747 from Seattle to China to be used in a breeding program.  Last year, China Southern flew 700 pigs from the US to China.
 
By the way, have you heard about the latest action movie?  It is about a US intelligence agent with a math phobia.  The name of the movie is THE FEAR OF ALL SUMS.
 
TTFN 

COPYRIGHT (c) 2002 BY ROBERT D FLACH LLC