I don’t see a problem with it; the money you contributed (and your employer contributed) wasn’t taxed when you ‘saved/contributed’ it, so not much different than getting taxed on the money in your 401K when you start withdrawing it.
Granted, I’d just assume not pay any taxes on anything, but the money needs to come from somewhere.
>>Granted, I’d just assume not pay any taxes on anything, but the money needs to come from somewhere.
and just o be more clear - I think carving out certain segments of people, and making them exempt, is what get us the problem we have - people are more than happy to vote for more spending if they think someone else will be picking up the tab. Everyone should have skin in the game; a vote for more spending should be a vote for more money coming out of your paycheck.
What makes you say social security isn’t taxed at witholding? It isn’t a pretax deduction. Quite frankly I’ve been angry since I received my first paycheck and saw FICA, had taken a good portion of my check.
Incorrect. The employee part of the "contribution" was taxed by the feds and state. It is not deducted from the gross before federal income tax is extracted. If self employed, all (employer/employee) was fully taxed. For W2 employee, the employer contribution is not part of the taxed gross.
Your contribution certainly is taxed, since you are taxed on “gross earnings”. Gross earnings is the amount before FICA Medicare, FIT, and state income tax and any other deductions such as insurance, etc.
IIRC, there were only certain categories of jobs (like academic) where SS payments were allowed to be deducted from your taxable income. For jobs not in those categories, that income from which the SS payments were made WAS taxed.
I don’t agree. Social Security is a Tax. If you don’t think so, try to opt out. I did not contribute anything. Contribution is a voluntary act. This money was forcibly removed from my check, just like the income taxes I am forced to pay.
Using your logic, tax returns should be taxed because any overage was taken out pretax.
That is just my take on the matter.
However on the reverse side, if you are if you are working you have to be making more than a certain amount for the Socialist Insecurity payments to be taxed.
The money you pay into social security is part of your gross income. IT IS TAXED!
Ha!! I had a person who hunted me down for like three years at the Company I worked for...that wanted me to open a Vanguard 401k.
Told her nope, 3 or 4 times. She badgered me to know "Why are you NOT "investing" in this 401k?"
I told her because I do what I WANT..and not what YOU want.
I've traded stocks for years...and I can get in and out...with a click. IRA's cannot do that...
I get everyone can't actively trade. I get it....but this woman was relentless..But I never folded.