Unlike proposed changes in the income tax, this policy helps the 46 percent of all Americans who owe no federal income taxes __________________________________________________ somehow, im not shocked that obama wants to block any increase on taxes on those that pay nothing in income tax. why disturb his key voter support.
"The nonpartisan Congressional Budget Office says payroll tax reductions give the economy a short-term boost. But it says the benefit is bigger if employers get the tax break instead of, or along with, workers."
From the linked article: Many of the same Republicans who fought hammer-and-tong to keep the George W. Bush-era income tax cuts from expiring on schedule are now saying a different "temporary" tax cut should end as planned. By their own definition, that amounts to a tax increase. We all agree this would be a Republican led tax increase, right?
Great analysis by the cheerleader... I mean the journalist. Never mind that social security taxes are completely different from income taxes in that (allegedly) they are designed to pay for a benefit that the person actually will receive. They pay in, they get back at retirement. This is not taxes being levied for the purpose of funding federal programs (again, allegedly). So all you're doing is shuffling from column A to column B. if we're not collecting, but we still have to pay it out, we'll just speed up SS's collision course with insolvency. In addition, since SS is deducted pre-tax, that means we'll also be increasing our taxable income, yes?
Well then O should be happy that the R's are willing to meet him half way, right? He's the one always wanting to raise taxes.
I'm certainly open to correction, but I don't see how it couldn't be pre-tax. It's deducted and not included in your taxable income, so it's not figured in to the figure you're using to calculate your tax bracket - so by definition, if the withholding is smaller, your taxable income is higher. Plus, since your benefits are taxable when you receive them, that would amount to double taxation.
The employee's portion of the FICA tax is not tax deductible, and individuals are taxed on income used to pay FICA tax. However, a self-employed person can deduct half of their self-employment tax. Having said that, the GOP cannot give a legit explanation for this. I get their point, but this will be a tax increase, and they will look like hypocrites. Very foolish move - can't explain this one away in a campaign commercial.
Mr., I'll have to go dig up my w-2 from last year and look at it again. I'm certainly not a tax expert.
I'm pretty sure deez is correct. You're taxed on the FICA when it's taken out and then again when it's paid out to you so it is double taxed. Unless you are under the age of 50 and will not actually ever get something paid out, in which case it will only be single taxed, so I guess that's nice.
