...instead of reining in trial lawyers:
Chicago USA Monday AM 24 August 2009
Editors, The Financial Times
A fine letter from the US in the Monday, August 24 Financial Times asks: "Would we really rather reduce [healthcare] benefits... than think about reining in the absurd awards trial lawyers regularly walk away with?"
Follow the money: Tort lawyers make lots of money, and give lots of it to politicians' election campaigns.
On the other hand, the only tax 2/3 of voters pay is a hidden national sales tax that funds 2/3 of the US federal government:
In 2007, the federal government took in a total of $2.692 trillion, 62% of which was withheld from wages (2009 Statistical Abstract of US, table #462.) So nearly 2/3 of all the actual dollars that came into the US general fund were from employer bank accounts, not employee's. Employers pass all of this on to customers in higher prices, resulting in almost 2/3 of federal income coming from an invisible national sales tax. This hoax started with the 1943 Current Tax Payment Act, but a regularly expanding national economy makes it all but painless to voters, resulting in their lack of interest in what Congress spends or does.
This problem could be fixed by the House and Senate passing, and a willing president signing, an act to change paragraph 3402 of USC Title 26 — 'Internal Revenue Code' Subtitle C 'Employment taxes' Chapter 24 'Collection Of Income Tax At Source On Wages'... from "every employer making payment of wages shall deduct and withhold upon such wages a tax..." to "every employer making payment of wages shall pay all of those wages to the employee...." The employer would still calculate the tax, and remind each payee how much the feds are expecting him to send in within 30 days"
Would this be inefficient? Certainly for an insatiable federal bureaucracy. But writing a check on their personal bank accounts to the Federal Government every month for 20% of their take-home pay would give voters strong incentive to stop voting for tort-lawyer supporters.
Arnold H Nelson 5056 No Marine Dr Chicago IL 60640 773-677-3010