Rep. Wexler of Fla introduces 3% tax hike bill ... on working class.

[dixiegrrrrl]

H.R. 1863:
Social Security Forever Act of 2009
Full text here:
http://www.govtrack.us/congress/billtext.xpd?bill=h111-1863

Remember this is introduced, and goes to Committee, where it may or may not die.

[napi21]

1. The way I read his bill, it imposes 3% on earnings over the base

which is about $100,000 now. Yes U know in many areas of the country $100,000 isn't a hugh amount, but I don't know that I would say it was just an increase on working class. AFAIK the majority of "the working class" makes a lot less than that!

[frazzled]

2. And that's on an individual's income, not a family's

SS tax is a payroll tax on an individual's income. So if one spouse is earning $90,000 and the other spouse is earning $40,000, neither of them would see an increase in their SS tax. At least I'm pretty sure that is how it works.

[napi21]

3. Yes that's correct. It looks very similar to an increase in the cap

to me, just worded differently. don't see a problem with this tactic, but I would also like to see an increase to the cap attached to some index...like the inflation index so this should be the end of this battle.

[Hawkowl]

6. Not income

To be precise, the SS tax is a tax on WAGES only. It does not apply to other forms of income such as interest, dividends, rental income, stock options, etc.

[amandabeech]

4. This sounds like a surcharge on incomes over the cap.

The surcharge rate is much lower than the regular rate.

I'm tired today and I can tell whether or not the employer also pays 3%, but it doesn't look like it. The regular social security tax is paid half by the employee and half by the employer.

I think this would be a good idea after the economy starts to improve, but I think that it is DOA today.

I would also favor a social security and medicare surcharge on capital gains. IMHO, much of the capital gains taxes are paid on capital that should have been in the hands of workers in the form of health care and wages, and thus should be subject to a make-up tax.

[dixiegrrrrl]

5. appreciate everyone's concensus on the "cap" being the key of the bill. Thanks.

[notesdev]

7. Watch the 'cap' disappear

between committee and the full House.