No, they are suggesting by shifting 2% of your Social Security contribution to taxable income and paying people to continue not working will dump money into the economy.
They use different words but this is what they are saying.
I got news for you. You already pay federal and state income tax on the FICA amount. It is not, like 401k contributions or pre-tax medical benefits, exempt from the withholding calculation. There is no "shift" with this plan.
Meaning the 2% falls directly to your net pay and there are no further tax implications. It’s a pure cut.
Just got my SS statement for 2011, it is $214.32 LESS than this year amount. O’nazicare I think. We don’t make 1/4th the $250K for a couple.
They will hit hubby’s SS and his Navy pension too I think.