Article by The Honorable Russell B. Long
There is a great deal of confusion about our tax system, both about what we are trying to do and how we plan to do it. For example, consider the social security tax paid by employers. The social security tax is a tax on payroll. As far as working America is concerned, it tends to be a tax on gross income. The employer's share of the tax is passed on to the consumer as part of a higher price for the product. As far as the consumer is concerned, it might just as well be a value-added tax or a national sales tax. In fact, the producer should like it better that way since it could be immediately taken into account and passed on.
Some liberal economists are concerned that the social security tax is regressive. They overlook the fact that the social security tax is part of an overall tax system which is comprised of progressive taxes like the individual income tax, the corporate income tax, and estate and gift taxes. To meet some of the social objectives of these same liberal economists the federal government is compelled to resort to less progressive taxes for the simple reason that it cannot raise enough money through so-called progressive taxes to pay for all the expenses of government.
About the Author
The Honorable Russell B. Long. United States Senator for the State of Louisiana. [Editor's note: As Chairman of the Senate Finance Committee, Senator Long is "widely regarded as the most influential tax writer in Congress," N.Y. Times, Dec. 2, 1978, at 32, col. 4. Thus, his proposal for sweeping tax reform delivered in New Orleans, Louisiana on November 30, 1978 is considered to be of great importance and has enjoyed wide publicity. See, e.g., N.Y. Times, Dec. 2, 1978, at 32, col. 4; Wall St. J., Dec. 4, 1978, at 8, col. 1; Wash. Post, Dec. 2, 1978, § F, at 8, col. 5. The text is substantially as delivered.]
Citation
53 Tul. L. Rev. 307 (1979)