General Discussion

WCGreen

(45,558 posts)

17. Believe me, I didn't mean to mislead you and I certainly know my tax

Tue Jan 1, 2013, 02:51 PM

Jan 2013

since I have been preparing tax returns for over 25 years now.

The Earned Income Tax was enacted right about the time they increased the FICA contribution back in the 80's and 90's.

Now the expiration of the temporary 2% cut in payroll that has expired is going to be mentioned by the president when the GOP wants to "fix" Social Security.

It was never meant to be permanent.

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The payroll "tax" is not really a tax... [View all] WCGreen Jan 2013 OP

The media and pols do a disservice by not explaining this. They want to make it sound like Obama kelliekat44 Jan 2013 #1

They depend and then prey on the short term memories of the American Public... WCGreen Jan 2013 #3

If you want SS to provide a decent standard of living you need to advocate to increase the tax. dkf Jan 2013 #2

I am glad we are in agreement... WCGreen Jan 2013 #4

I used to advocate for saving on the side but it seems impossible to the majority. dkf Jan 2013 #9

how do you "know" the inability to save more is because earners don't have CTyankee Jan 2013 #24

Because being personally responsible means you have saved 10-15% of your salary dkf Jan 2013 #28

but you don't know that each and every worker in the 1930s were doing this, do you? CTyankee Jan 2013 #29

Back then people didn't expect to retire. dkf Jan 2013 #31

Thank you for doing research...there ya go... CTyankee Jan 2013 #39

It's not a savings plan and was never intended to be one Major Nikon Jan 2013 #33

Small Business Owners and Freelancers have been paying 13% to 15%, and we have to pay more? AZ Progressive Jan 2013 #44

I like this idea in the "Atlantic" enlightenment Jan 2013 #5

That's more than offset by the Earned Income Tax Credit... WCGreen Jan 2013 #8

Well said... TheProgressive Jan 2013 #6

The Bush tax cuts were never meant to be permanent either. W_HAMILTON Jan 2013 #7

To me the FICA tax makes the idea of Social Security as a persons contribution... WCGreen Jan 2013 #10

And that matters little to the Republicans. W_HAMILTON Jan 2013 #13

Believe me, I didn't mean to mislead you and I certainly know my tax WCGreen Jan 2013 #17

The president may mention it... W_HAMILTON Jan 2013 #20

For those who qualify for the EITC ecstatic Jan 2013 #40

But they're not being made permanent. Nothing in politics is permanent. stopbush Jan 2013 #34

Someone should notify Congress. AnotherMcIntosh Jan 2013 #11

It's considered a tax because it is a mandatory collection from the WCGreen Jan 2013 #14

You say, "We can all quibble ..." No. We can't. I'm not quibbling with you. AnotherMcIntosh Jan 2013 #15

It's only looked at as a tax because it is tied to the amount you earn and is a mandatory WCGreen Jan 2013 #18

It's looked at as a tax because it's defined as a tax. Igel Jan 2013 #23

So you would be happy with keeping the 4.2 rate... WCGreen Jan 2013 #25

Not true Sgent Jan 2013 #37

Your payout depends on your contribution to the fund... WCGreen Jan 2013 #38

no - it's determined by how much you earned blcartwright Jan 2013 #41

Which is directly related to how much you and your employer have kicked in. WCGreen Jan 2013 #42

there's a high correlation blcartwright Jan 2013 #43

The irony is that most people did not even notice they got the "tax cut" but.... kentuck Jan 2013 #12

And folks must remember, that cut was covered by the General Fund. RomneyLies Jan 2013 #16

Great Point that I forgot to mention... WCGreen Jan 2013 #19

Payroll taxes, imo, are taxes subject to income taxes if, and when, politicians are willing indepat Jan 2013 #21

Everything you said is true and accurate and I'm surprised there aren't more recs. Poll_Blind Jan 2013 #22

+1 doc03 Jan 2013 #26

If people start paying more into FICA avebury Jan 2013 #27

It really did make a difference for me bhikkhu Jan 2013 #30

You realize FICA tax rate has been raised a few times before right? It hasn't SWTORFanatic Jan 2013 #32

Of course I know that.... WCGreen Jan 2013 #36

I can't take the $50 hit next month. alarimer Jan 2013 #35