26 Nov 2023 8:01 am
I see your point and have used the employer portion added to my contribution to see total put into social security.Cannonpointer » 25 Nov 2023, 6:21 pm » wrote: ↑ That is the amount workers pay - period. It comes right off the top of their wages. In fact, the so-called "employer's share" isn't even RECORDED as their wages. But it IS their wages. The employer does not have to pay one penny of that unless the fellow they are paying it on works for it. No work no pay - so it isn't an employer tax. It is a tax SPECIFICALLY on that employee's labor - period. Games are for children - this here is REAL TALK, nigga!
By definition though, FICA taxes are an excise tax on employers and fully deductible.
"The law requires employers to withhold taxes from employee earnings to fund the Social Security and Medicare programs. These are called Federal Insurance Contributions Act taxes. Your employer also pays a tax equal to the amount withheld from employee earnings. The self-employed pay Self-Employed Contributions Act (SECA) taxes on net earnings. SECA taxes also fund Social Security and Medicare. The self-employed pay both the employee and the employer share of SECA. But the law permits them to deduct half of the self-employment tax as a business expense."
I have two friends who were self employed for most of their working careers. They played the game and hid earnings to minimize FICA taxes. Pretty sure they both earned far more money than I did. It would have worked out for them if they actually saved that money but they didn't. When 62 rolled around, they both receive less than the average SS at 62 which is $1250/mo..
I don't think you need to add those tax percentages to a worker to show they are getting screwed by the system. As I've said before, 10% are doing well, the next 10% will survive and the bottom 80% are a few paychecks from disaster.
Yes , Republicans love them some tax cuts, but you have to admit without that push tax rates would definitely be higher. I'm convinced that Euro Zone tax rates will end up here in the future. It's the only way to address the healthcare situation.