Get America Working

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. With almost 10 million Americans “officially” unemployed and tens of millions more who might seek employment if the job market improved, it’s time to address one of the root causes of unemployment—a tax system that unduly penalizes employment. Former Vice President Al Gore has urged, as part of his campaign to combat global warming, that pollution taxes—including a tax on carbon dioxide emissions—be used to eliminate payroll taxes. Here’s what he recently told the Sierra Club: “….we ought to reduce employment-based taxes down to nearly zero and replace them dollar for dollar with pollution-based taxes, principally on CO2. Think about it: We live in an outsourcing world where competition with low-wage-based developing countries is fierce. We are handicapping ourselves by piling on top of our single biggest disadvantage--our high-wage structure--the full cost of our health, education, and welfare systems, which come in the form of employment-based taxes. These taxes are killing our ability to compete. Why not give employers and employees a break and encourage more jobs while discouraging the destruction of the planet?” And leading economists agree reducing payroll taxes and substituting the revenues from energy/materials taxes will help stimulate the economy and reduce our dependence on fossil fuels. Liberals, conservatives, business leaders, environmental advocates, older Americans, young people, and people with disabilities are all coming to the same conclusion: By reducing taxes on employment and boosting them on our consumption of energy and natural resources, we can help to create job opportunities for tens of million of Americans.

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