Truth-O-Meter: Herman Cain said workers now pay 15.3% in payroll taxes (How accrate is this?)

Politifact ^ | 10/12/2011

[Rudder]

The kicker is that the new 3.8% rate includes not just payroll but all income, including all investment income.

What 3.8%?

[BADW0LF]

Fox News 19 in Cincinnati interviewed Herman Cain on his 15.3% figure. He admits the 7.65 employer contribution does not belong to the employee, and will NOT be compensated. Link to see the video.
http://www.fox19.com/story/15691634/reality-check-face-to-face-with-herman-cain-over-9-9-9-plan

[tinamina]

Perhaps Cain SHOULD have said that “on behalf of every worker, every employer pays 15.3% of the employee’s income to the IRS and deducts 7.65% from every employee’s paycheck”. That would be accurate. If a person is an entrepenuer, that person has to pay the full 15.3% on their own, without the subsidy of an employer.

[BADW0LF]

/\ That would be inaccurate also. The employer must match the employees contribution.

[itsahoot]

Do you have any response to this calculation Yes they are B$. most deductions under any other President will go up because the Bush tax cuts. Are gone Jan 1. You or no one else know what meddling will take place after the election.

Fact is the speaker of the house revealed that on any given year 5,000 changes are put into the tax code, my guess none of those help the working middle class. The 999 plan stops any of that.

I would like to live in a country where the constitution comes first, you know like every servicemen has taken an oath to defend and protect the constitution from all enemies Foriegn and domestic. Maybe your oath calls for something less.

[SeekAndFind]

RE: Make the employer pay the 9%.

That’s a very nice suggestion. How’s that going to help jobs growth?

I am going to hire someone at a salary of $40,000 and then in addition to that, I have to pay $3600 for him?

Good luck selling that to employers.

[Tramonto]

Currently you would pay 7.65% for your employee in payroll taxes. For a $40,000 employee, you still have to pay an additional $3060.

Under the Cain/Tramonto system, drop the salary down to $39,184 and then pay the 9%/$3876 to the feds. The total compensation would be the same for the employer. The employee takes a 2% pay cut but doesn't have to pay any income tax or payroll tax. For the vast majority of people, this would result in a large take home pay increase.

[NittanyLion]

If I am dense, maybe you can show everyone where the calculations are wrong in Post #108 above.

Have you reviewed #113 yet?