The payroll tax – which has increased on seven occasions since 1980 and is the greatest tax burden for most American families — could be cut by over $75 billion with broad political support. This finding comes in a new report entitled Tax Waste, Not Work by the non-profit organization Redefining Progress. One potential tax cut outlined in the report would exempt the first $5,000 of a worker’s annual salary from the payroll tax – the FICA line on your paycheck. This would save $620 a year for a worker earning $15,000.

Tax Waste, Not Work builds upon previous research by a variety of organizations to advocate a tax shift that would reduce individual and corporate taxes by charging the full social cost for harmful activities such as pollution. The report does not endorse a particular policy choice, but instead provides an overview of academic and political thought on the concept of a tax shift.

The report’s authors cite four main benefits of a revenue-neutral tax shift: · Civic – pay for what you take, not what you make, · Economic – create jobs and investment, · Environmental – more protection with less regulation, and · Tax reform – a simpler and more efficient code.

To pay for the tax cuts while realizing these benefits, the report discusses four broad tax and fee categories: · Taxes on energy consumption, · Taxes on pollutants, · Taxes on virgin materials, and · User fees for the use of publicly owned resources such as minerals and broadcast spectrum.

This revenue could be used to reduce taxes on both labor and income through such means as lowering payroll, capital gains and corporate income taxes.

“Tax Waste, Not Work is an important, well written overview of the opportunities presented by tax reform that integrates economic, environmental and social goals,” said Dawn Erlandson, Executive Director of Americans for a Sustainable Economy. “It is an excellent guide on the complex issues involved.”

For further information on the report, or to purchase a copy for $10, contact Redefining Progress in San Francisco at (800) 896-2100.

For further information on tax shift policies, contact Americans for a Sustainable Economy in Washington, D.C. at (202)-234-9665.