[kabar]

It's an issue debatable by the politicos but I'm going to throw in my one drawback. IT WILL BE HELL TO RE-START THOSE PAYROLL TAX DEDUCTIONS FROM PAYCHECKS ONCE IT'S DECIDED TO DO SO.

Good morning, Pat. 70% of American income earners pay more in payroll taxes than they do in income tax. Obama had a 2% reduction in the employee's contribution for almost two years.

Agree that restarting it will not be welcomed. However, SS is already spending more in benefits than it is now receiving in revenue. The shortfall is made up by cashing in T-bills from the the SSTF. The SSTF is projected to be exhausted in 2033. Unless the program is reformed, benefits, by law, must be reduced to revenue received. It would amount to a 20% cut in benefits. So a payroll tax holiday will hasten the exhaustion of tghe SSTF.

[Fishtalk]

I thought to myself “I bet Cousin Mike will have more information on this.”

I did not know that Obama reduced the payroll deduct by 2%. Lord that had to be a mess.

I do not think reducing payroll taxes, which I know most Americans pay in more than income taxes....Lord 7.65% of their income. One of the greatest pieces of legislature ever passed by the congress critters, who oncit upon a time did their job, was the 401K/IRA thing.

Over the years husband and contributed maybe 3% of our income. It rose to great amounts and I get way more money from my 401K than Social Security, which adding employer’s contribution was 12.9% over the years.

But this requires self-discipline, which is completely free, so the gubmint must control it.

[Alas Babylon!]

I have done a lot of contract work over the past few years. I get paid and taxes are not deducted. I use form 1099 for my taxes.

I was shocked at first how much payroll taxes cost an independent contractor!

Folks, when you work like this, you have to pay BOTH sides of the payroll tax. When you work for somebody as an employee, you only pay half, and the employer pays the other half. When you’re a independent contractor or self business—you have to pay both sides, so your payroll tax DOUBLES.

You might as well accept the fact that if someone offers you $10,000 to do a job, it sounds like a lot, but you’re really only getting half after Uncle Sam takes his huge horse bite out of that apple!