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Payroll taxes

Discussion in 'Politics, Elections & Legislation' started by BILL GRILL, Jan 4, 2013.

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  1. BILL GRILL

    BILL GRILL Well-Known Member

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    Ok I have 11 people working for me making between 30 and 50k a year. First payroll check of the year the guy that makes the least taxes increased by $9 dollars per week the guy who makes the most taxes increased by $20. per week. Now I hate to tell you but these guys can least afford it. Who did this the Dems or Rep ? This sucks I am a little bit peeved to say the least!
     
  2. NMULTRARUNNER55

    NMULTRARUNNER55 Member

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    Both Democrats and Republicans did this and Obama signed it.

    Steve Nunley

    Albuquerque, NM
     
  3. stokinpls

    stokinpls Well-Known Member

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    No wonder Reid couldn't wait to shove that bill down to the House. Probably getting comp'ed at the Bellagio as we speak. ;-)

    Bob Falfa


    Actually it had never left. They had just reduced the amount they took out of your check for FICA from 6.5% to around 4.5% to give people a little more walking around money. This "2%" reduction was set to expire Jan 1. Not sure if it was ever a stumbling block to the fiscal cliff deal, or was off the table. Don't recall it being mentioned. The more you earn the bigger your reduction, amount wise.
     
  4. GW22

    GW22 Active Member

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    Bill:

    Click the link. Your modest earners took a heavier hit proportionately than someone making $500K.

    They got tag-teamed by both parties and it goes to show that the only thing more despicable than a Republican is a Democrat. But they're both pretty despicable.

    -Gary
     
  5. 87AA

    87AA TS Member

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    How short memories we have.

    For the past 2 years we've been on a "payroll tax holiday". Payroll taxes have now reverted back to where they're supposed to be. The smart move when the "holiday" was implemented would have been to store away that extra 2% and not touched it. Obviously spending was what the government wanted to help give the economy a shot in the arm. Unfortunately many people have positioned themselves to need that extra $9, $20, $50, $100 per month.

    The lower taxes was always meant to be temporary.
     
  6. Traders

    Traders Well-Known Member

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    Yes, the lower SS taxes were meant to temporary and so were the Bush tax cuts. If the Congress that voted for the cuts wanted them to be permanent the should have voted that way. Truth is, it's easier to get this stuff passed if you say, "it's just a temporary measure". Kicks the can down the road. "Hopefully I'll be out of office before the issue comes up again." That way someone else takes the blame when temporary is supposed to end.
     
  7. Joe Potosky

    Joe Potosky Well-Known Member

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    So, if we made the two year cut permanent, Any ideas on how to fund SSI without borrowing from China?

    Everyone wants, but no one wants to pay for it....
     
  8. dshot

    dshot Member

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    Joe, SS was paid for and wasted by both parties, now they want to cut out the ben's we paid for.
     
  9. Don Steele

    Don Steele Well-Known Member

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    Keep in mind...this tax is a pathetic attempt to finance a PONZI SCHEME that BOTH parties have lacked the GUTS to correct for decades.
    Roosevelt's "DEAL" was you PAY in your entire working life...you only collect a benefit if you live longer than you should.Check the life expectancy tables when Social Security was initiated vs. the "retirement age"...i.e.: when you could apply for a benefit check.
    IF....(and THAT'S A big if)....the same relationship had been maintained that we had at the beginning of this whole mess....you'd be eligible for a benefit check somewhere in your mid-late 70's.
    HOW DO YOU LIKE IT NOW...????
     
  10. halfmile

    halfmile Well-Known Member

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    LBJ took the money, left a pile of IOU's. Then they added SSI disability to the mess and anyone faking a bad back got a lifetime income.

    Now they are paying it out with what comes in. Soon it will start going backwards.

    HM
     
  11. Don Steele

    Don Steele Well-Known Member

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    Just wait until they add "MEANS TESTING"....
    If you've been careful with your money all your life, invested wisely, SAVED instead of SPENT...You don't NEED IT( read: you have "other means") when compared to your neighbor who spent every penny he ever made...kept himself in new cars, boats, trips to Europe and Hawaii. The poor soul arrives at retirement with NO "nest egg" of assets to draw on sooooo....the money YOU put in must go to support HIM.
     
  12. Traders

    Traders Well-Known Member

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    dshot,

    You said, "SS was paid for and wasted by both parties, now they want to cut out the ben's we paid for" i really don't understand the money was "wasted by both parties" Are talking about the investments that the SS fund has made in US government bonds.

    Don Steele

    The SS program is an insurance program not an investment program. Like some insurance, fire, accident, etc. you only collect under certain circumstances and those circumstances are not related to how much insurance premium you have paid. Do you feel cheated if you have bought fire insurance but never had a fire?

    Halfmile,

    What are those IOU's you are talking about? I hear this comment frequently, but i never really understand it.
     
  13. grunt

    grunt TS Supporters TS Supporters

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    The Goverment tapped the SS fund for money, In its place they put IOUs. The fund is full of IOUs. So we taxpayers are on the hook to replace it.
     
  14. dshot

    dshot Member

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    Traders, I may have been misinforned, I was thinking once someone reached the age of 66, they would receive a monthly check from the SS system.
    The funds in the system was to be used of SS only but it has been spent on other programs and not just for SS ben. That was why I was saying it has been wasted.
     
  15. Traders

    Traders Well-Known Member

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    grunt,

    The SS program collect cash and distributes cash. Sometimes, most of the time, SS takes in more cash than it pays out in SS benefits. It is required by law to invest those funds in interest bearing assets.. My guess is that you wouldn't want the money not earning interest. By law, SS invests the money in US Treasury securities. Once the purchase of those bonds is made, like all sellers of bonds, the seller is free to use the money as they see fit. That means that once SS buys the US Treasuries, the funds go into the coffers of the US government and it can spend the money as directed by Congress.

    So, what would you do to change the system. Serious question.

    dshot,

    SS spends it's money one of two ways. Either by paying SS benefits or investing in US Treasure Securities. If you read my comments above, you will see what happens to the invested funds. So, unless you think that the money should not have been invested in interest bearing assets, the money hasn't been "wasted".
     
  16. dshot

    dshot Member

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    Trader, so you are saying that SS funds and the interest it earned was only spent for SS benefits. If that the cast the money was not wasted
     
  17. Traders

    Traders Well-Known Member

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    dshot

    Yes. You can look up the information directly on the web. The Feds show how much money comes in, both from interest on the Treasury securities and from SS contributions and how much is paid out in SS benefits. If I remember correctly, current income is down significantly because interest rates are down as are SS contributions.

    Many readers of this site don't like it that the Federal government spends the money it gets from the bond sales, but they never seem to come up with a better investment idea. With the exception, that is, of having the SS Administration invest in listed securities. i cannot think of a bigger disaster. Think of the implications, companies lobbying the Administration for capital investments, stock brokers negotiating commissions, securities of bankrupt companies becoming worthless, Congressman demanding investment is companies headquartered in their states, no guaranteed retirement income. The possibilities are endless.
     
  18. midalake

    midalake Well-Known Member

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    OMG BILL GRILL Sr./Jr.

    Raise hourly wage by .25. Increase customer purchase by .5% everyone happy, Bill Sr. and Bill Jr. still shoot and collect all they want!!!


    GS

    PS OR.... your BEST 40-50k employee's can transfer direct to teachers if they have a four year degree???
     
  19. skeet_man

    skeet_man Well-Known Member

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    My great aunt/step grandmother (when my grandmother died, my grandfather married her sister) was never a US citizen. She had a green card and lived in the US for 20+ years. Never worked a day in her life in the US. When she reached "retirement age", she started collecting SS benefits.

    Tell me the system ain't broken.
     
  20. Don Steele

    Don Steele Well-Known Member

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    Traders....you're providing a revisionist interpretation of SS. Understandable, since MASSIVE revision must happen if this boondoggle is to survive. It has always been referred to as "Social Insurance" to that extent you are correct. However...there was no test applied to a person who had stopped working to reduce or eliminate their benefit if they had net worth at or above some arbitrarily chosen limit. There is an earned income test which prevents someone from collecting if they are still employed, but NO TEST for net worth. WATCH FOR IT.
    You mentioned Fire insurance...I'm not FORCED to buy fire insurance. I'm not FORCED to pay for YOUR fire insurance.
    I would also like to re-state my earlier point:
    When the program started...BENEFIT AGE was BEYOND LIFE EXPECTANCY.
    The easiest way for the system to survive is to RETURN THAT RELATIONSHIP.
    Give us back the system Roosevelt wanted us to have....you only collect if you live longer than you should.
    HOW DO YOU LIKE IT NOW...?????????????
     
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