Under Ms. Ghilarducci's plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5% of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3% a year, adjusted for inflation.
Current employer + employee "contributions" are 14.65%. So an additional 5% of pay would result in a 33% increase in EVERYBODY'S tax rate. A 33% increase in taxes. I thought Barry was going to cut everybody's tax.
Current employer + employee “contributions” are 14.65%. So an additional 5% of pay would result in a 33% increase in EVERYBODY’S tax rate. A 33% increase in taxes. I thought Barry was going to cut everybody’s tax.”
Slight adjustment to your calcs:
EmployEE gets 7.65% deducted from pay for FICA and MED.
EmployER matches that with another 7.65%.
That totals 15.30%—not 14.65%
If a person is self-employed- they pay the whole 15.30% themselves, along with the income taxes on their earnings.