Here's an interesting factoid to ponder on Labor Day. The vast majority of working Americans pay a greater share of their federal taxes as payroll taxes, not income taxes. In fact, 86 percent of wage earners pay more in payroll taxes than income taxes, according to the Tax Policy Center.

Why should this matter?

First, the payroll tax, which pays for Social Security and Medicare, is regressive -- that is, lower- and middle-income workers pay a higher share of their income in this tax than do high-income workers. It is a flat 15.3 percent tax (split between worker and employer -- though economists say the employer's share ultimately is shifted to workers in the form of lower wages). It does not apply to wages above $97,500....

Second, as Michael Lind notes in "Share the Credit" in the September issue of American Prospect magazine, many workers cannot take advantage of many tax benefits -- from the home mortgage interest deduction to various child care and savings credits. They just don't pay enough in income taxes to benefit from these tax credits. The system is set up so that workers claim these tax credits against income taxes, not payroll taxes.

Lind thinks that should change, too. His idea is to make all Americans who pay payroll taxes eligible for every existing income tax credit.This idea has been around for some time on the child tax credit. Lind asks a good question: Why limit it to just that one tax credit?

Of course, the federal government would have to make up for lost revenue. But that could have good effects, too, making the tax system more fair and less complicated....

Details aside, Lind's point is a valid one: American workers who pay payroll taxes should not be discriminated against in favor of Americans who pay income tax. Both Republicans and Democrats should be able to agree on that. How about that for a post-Labor Day agenda in Congress and going into the 2008 presidential election?

For the complete editorial, please visit The Sacremento Bee's web site.