Psst, taxes go up in 2013 for 163 million workers (typical worker about $1,000 a year)

[Omaha Steve]

This discussion thread was locked as off-topic by muriel_volestrangler (a host of the Latest Breaking News forum).

Source: AP-Excite

By STEPHEN OHLEMACHER

WASHINGTON (AP) - President Barack Obama isn't talking about it and neither is Mitt Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election.

A temporary reduction in Social Security payroll taxes is due to expire at the end of the year and hardly anyone in Washington is pushing to extend it. Neither Obama nor Romney has proposed an extension, and it probably wouldn't get through Congress anyway, with lawmakers in both parties down on the idea.

Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500.

Why are so many politicians sour on continuing the payroll tax break?

FULL story at link.


Read more: http://apnews.excite.com/article/20121021/DA224OSG0.html

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In this Oct. 11, 2012 file photo, Republican vice presidential candidate, Rep. Rep. Paul Ryan, R-Wis. speaks during the vice presidential debate with Vice President Joe Biden at Centre Colleg, in Danville, Ky. A temporary reduction in Social Security payroll taxes is due to expire at the end of the year and hardly anyone in Washington is pushing to extend it. Neither Obama nor Romney has proposed an extension, and it probably wouldn’t get through Congress anyway, with lawmakers in both parties down on the idea. (AP Photo/Eric Gay, File)

[geckosfeet]

1. Money that is supposed to go into our SS funds for our retirements. But we know how that goes.

[underthematrix]

2. If you're talking about the expiration of the Bush tax cuts

PBO and his surrogates have been talking about that non-stop.

[Skittles]

4. they would not have to

if repukes would stop pimping for the rich

[Swede Atlanta]

5. I think they are referring to the temporary SS payroll tax cut that is also due to expire ....

at the end of the year. If both the SS cut and the Bush-era cuts expire, I would expect to pay another $3,600 to $4,000 a year. There goes the money I had planned to plow back into my house in the form of an energy efficient heating and cooling system.

[djean111]

6. The longer we stop funding Social Security at pre-tax-cut levels,

the more certain it will be declared insolvent and put on the chopping block.
I was never comfortable with calling a diminution of funds to Social Security a "tax cut".

[xtraxritical]

12. You're exactly right djean111.

[haikugal]

17. I totally agree!

[Overseas]

3. Because Republicans are holding middle class tax cut hostage to extending tax cut for millionaires.

Democrats wanted to make the middle class tax cuts permanent, but the Republicans won't let it pass by itself. They want their top 1% to have a permanent Bush tax cut too.

[bluestateguy]

7. Let the SS payroll tax holiday expire; bring back the Making Work Pay tax credit

That would be a fair swap that would still protect the integrity of the SS trust fund.

[REP]

8. It wasn't a "tax cut;" it was a shitty idea to begin with since these are FICA (Social Security)

I'd rather be SS be solvent than have these shitty feel-good do-nothing schemes, but thanks.

[AnnaLee]

9. Good, They never should have used the worker savings for this.

I'm trying to explain something and wondering if I can.

You have heard the expression - money is fungible? Yes, but record keeping is not. Since it is fungible it wouldn't have mattered if money had been taken from the general fund and sent directly to the workers. By forcing Obama to skip a stimulus from the general fund but to take the stimulus from the payroll tax, a fraudulent scam that threatens the Social Security program was agreed upon with the blessing of the Congressional Republicans.

But, right now the general fund is "replacing" the missing payroll tax. Money is fungible folks. The records show that the workers did not pay their 2% when the workers had no say in how the accounting was done.

The payroll tax must be restored unless, of course, you support the worker's fund being turned into a welfare system.

Romney and Ryan ideologically believe that money in the hands of the masses is wasted opportunity. They rationalize that any money held in trust for purposes of retirement and/or the heirs of the worker is wasted opportunity.

Stealing worker's pensions, savings, social safety nets, etc. is just good business sense. Killing your children's futures is apparently very masculine, at least for white men. (Note, if one is facing something like old people's problems [dementia, Parkinson's, low immunity, etc.], if the 1% has stolen your savings AND safety nets, then your children will inherit the bills associated with your old age and dying.)

[juajen]

10. Psst! We have been hearing about this non-stop

for almost a year. I never felt this decrease in ss payment should have been made. SS is a lifeline. I know, for without it I would be dead in the water. SS and Medicare should be kept at all costs. Believe me, if it had not been taken out automatically, my dear late husband would have never saved that money. I was always the one with the savings account. I thank God and the Democrats every day for this haven of mercy. I also have to brag on Medicare. My medical bills were over $100,000 this year due to a serious condition requiring hospitalization for two weeks. I am still recovering, but grateful that my copays have been less than I could have believed. No deductibles or copays during hospitalization. I have had a lot of copays for follow up doctors' visits and medication, but, all in all, what a relief! I know this will be hard, but, honestly, it was an emergency situation, and if it goes on much longer, it will never go up again, and people will possibly lose ss.

[bhikkhu]

11. So, payroll taxes will go back to where they need to be

to fund Social Security. Which is pretty much in everyone's best interests.

There's always a fear that good governance and simple responsibility will be ditched by one side or other for political purposes, that sane policy will be steered into the ditch by the spin-meisters, and that people will wholeheartedly buy into ignorant positions and irrational responses.

This article seems to be concerned that that's not happening!

[doc03]

13. It was a very bad idea anyway N/t

[shawn703]

14. $4500 per family of 6-figure income workers

Isn't going to hurt them much at all. For one, that's broken up between both earners ($2250 per person) over roughly 25 paychecks a year, or $90 a check. Not only that, but it's not like their $90 less gross is going to reduce their net pay each check by $90, more like $55-$60 depending on their income tax bracket. I doubt someone in that income range is going to be too upset over $60 a check.

[former9thward]

15. $4500 would apply to those two earners making over 200k a year.

That is not a typical worker. If someone made 50k a year then they have an extra $1000 a year tax. A lot of people might be upset at that. However I was always opposed to it and we should not renew the cut.

[bemildred]

16. Maybe they hope to keep the system solvent into the future? nt

[muriel_volestrangler]

18. Locking - analysis, not Latest Breaking News

This is an analysis of a situation that has been known about for months, not 'news'.

GD, Good Reads or Politics 2012 would be a good place for this article .