28 Sep 13
FICA tax has got to be the biggest smoke and mirror tax ever.
Officially it is 7.65% of your gross income, but then your employer has to match it which means that the you are actually paying 15.3%. The fact that your employer is paying it has nothing to do with it. It is still money that your employer must pay for you, you just never see it. If you are self employed, you get to pay the entire 15.3%.
Once you start making 6 digits you get to escape paying this tax.
Everyone pays the same rate. Once you make enough money the effective rates drops. If you die before you start collecting benefits, your family kisses your money good bye.
It is a federal income tax, but no one ever seems to mention it when they say that many Americans never pay federal income taxes. I wonder why our nation turns a blind eye to this tax.
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28 Sep 13
Originally posted by EladarFor the sake of completeness, the FICA tax funds Social Security and Medicare.
FICA tax has got to be the biggest smoke and mirror tax ever.
Officially it is 7.65% of your gross income, but then your employer has to match it which means that the you are actually paying 15.3%. The fact that your employer is paying it has nothing to do with it. It is still money that your employer must pay for you, you just never see it. If you are ...[text shortened]... mericans never pay federal income taxes. I wonder why our nation turns a blind eye to this tax.
28 Sep 13
Originally posted by EladarActually, about 14.2% of what the employer pays is taxed (under the premise you gave). Fractions, always tricky if you don't know high school math!
FICA tax has got to be the biggest smoke and mirror tax ever.
Officially it is 7.65% of your gross income, but then your employer has to match it which means that the you are actually paying 15.3%. The fact that your employer is paying it has nothing to do with it. It is still money that your employer must pay for you, you just never see it. If you are ...[text shortened]... mericans never pay federal income taxes. I wonder why our nation turns a blind eye to this tax.
28 Sep 13
Originally posted by KazetNagorraI'm just doubling the 7.65's.
Actually, about 14.2% of what the employer pays is taxed (under the premise you gave). Fractions, always tricky if you don't know high school math!
In any case, it is a pretty good chunk that never gets discussed.
Republican don't like to admit that rich people are getting taxed at a lower rate.
Democrats don't like to admit the additional taxation.
29 Sep 13
Originally posted by EladarNow try and see what figure you get if the tax percentage is 50% and it is matched by the employer (the tax from the total amount in this case is effectively two thirds, not 100% ).
I'm just doubling the 7.65's.
In any case, it is a pretty good chunk that never gets discussed.
Republican don't like to admit that rich people are getting taxed at a lower rate.
Democrats don't like to admit the additional taxation.
30 Sep 13
Originally posted by KazetNagorraI understand what you are saying. If that is all you have to say, then it seems you simply want to quibble and don't really want to discuss the problem.
Now try and see what figure you get if the tax percentage is 50% and it is matched by the employer (the tax from the total amount in this case is effectively two thirds, not 100% ).
Why isn't FICA considered an income tax when it is based on income? Why isn't the fact that it is very regressive ever brought up?
It is funny how neither the left nor the right is really willing to even question the FICA tax.
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30 Sep 13
2 edits
Originally posted by EladarYou are the quibbler here. It isn't based on income.
I understand what you are saying. If that is all you have to say, then it seems you simply want to quibble and don't really want to discuss the problem.
Why isn't FICA considered an income tax when it is based on income? Why isn't the fact that it is very regressive ever brought up?
It is funny how neither the left nor the right is really willing to even question the FICA tax.
http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax
"Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States Federal payroll (or employment) tax[1] imposed on both employees and employers to fund Social Security and Medicare[2]"
It's called a payroll or employment tax instead of income tax because the employee never has it as income, silly person. The pay he gets, is taxed under the income tax laws.
01 Oct 13
Originally posted by JS357When it was challenged at SCOTUS, they ruled it was an excise, not an income tax.
You are the quibbler here. It isn't based on income.
http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax
"Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States Federal payroll (or employment) tax[1] imposed on both employees and employers to fund Social Security and Medicare[2]"
It's called a pa ...[text shortened]... loyee never has it as income, silly person. The pay he gets, is taxed under the income tax laws.
Somehow a ruling reminiscent of the Robert's ruling on the ACA.
01 Oct 13
1 edit
Originally posted by JS357Do you actually believe what I quoted or are you just explaining how the government sees it?
You are the quibbler here. It isn't based on income.
http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax
"Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States Federal payroll (or employment) tax[1] imposed on both employees and employers to fund Social Security and Medicare[2]"
It's called a pa ...[text shortened]... loyee never has it as income, silly person. The pay he gets, is taxed under the income tax laws.
01 Oct 13
Originally posted by JS357That is what we're supposed to believe. Actually, when it was collecting a surplus, the money all went into general funds. Treasury then recorded IOUs to the SS and Medicare trust funds.
For the sake of completeness, the FICA tax funds Social Security and Medicare.
Now, there are insufficient funds collected to pay current benefits, so the general fund has to buy back the IOUs and interest. The short of it is that Social Security and Medicare are part of the national debt, which is not being paid because every year we run a deficit. How long will there be fools to fund this?
01 Oct 13
Originally posted by normbenignJust goes to show it truth doesn't matter, only how a judge wants to see it matters. FICA is a tax on income, based on income, therefore it is an income tax.
When it was challenged at SCOTUS, they ruled it was an excise, not an income tax.
Somehow a ruling reminiscent of the Robert's ruling on the ACA.
01 Oct 13
Originally posted by JS357Of course, SCOTUS makes laws. At the time it was considered as outrageous as Robert's finding that the "fines" in the ACA were really "taxes" and therefore Constitutional. In the early 30s, many still believed that a single income tax was unconstitutional, and that a second income tax was unbelievable.
I fail to see a legally pursuable issue arising here.
We live in a post Constitutional America. Jurists and lawyers love slippery or ambiguous terms. Laws mean whatever they say they mean. This really means ultimately that there is no law, just a sort of peaceful anarchy.