Dear God are these fools delusional! The employer 7.5% is wages directly out of the employees compensation!
just because the tax in hidden doesn’t mean it doesn’t exist.
This is like saying since you don’t actually get the money before having it deducted for social security and medicare that you were never actually taxed.
The self-employed pay this much. For example, let’s say yer a tradesman,fill out a Schedule C, that’s what you have to pony up. If yer an employee you pay half this, the employer pays the other half.
Because the employer magically makes the other half appear out of nowhere... good grief. It also didn’t account for the fact the 9% replaces both payroll and income tax..
But when Obama says that 80% of Americans support his jobs bill, it is accepted without doubt.
just to clarify and no I don’;t want to hear from those who oppose or support and come out with lies, just straight answers please.
Does this mean the child tax credit which went up under Bush will be gone?
Does this mean all deductions will be taken away?
Does this mean 9% will go on top of existing sales state tax therefore 8% will not be added to the new 9% therefore 17% is added on what you buy similar to a VAT?
I’m under the impression that if you make less than 20 grand then you pay 5.75% tax but this will go up to 9%?
Just yes or no please as the last time I saw these threads it turns into accusations, arguments etc and I can’;t be bothered right now with arguing .
semantics...Obama’s rollback is temporary.
nothing like being stretch arsmstrong to try and prove some one is wrong.
The employer is paying half of the social security on behalf of the employee. i.e. if the employer did not have to pay FICA they could pay the employee that amount instead, with no increase in their total compensation for the employee. It was an attempt to make the bit on the employee not look as large as it is.
I do not like that FICA and Medicare are referred to as payroll taxes.
At one point, moderator Charlie Rose warned other candidates that mentioning the plan meant more rebuttal time for Cain. “If you keep mentioning 9-9-9 and Herman Cain, I’m going to have to go back to him every other question,” Rose said.
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At what point did any moderator say about romney or Perry?
I guess Cain is not their pick.
Another freeper spreading liberal lies about Cain?
Why are yu doing this?
Another freeper spreading liberal lies about Cain?
Why are yu doing this?
On another note regarding the 9-9-9 plan. When taxes are pushed to the consumption side from the production side, they are not as easy to hide. Politicians won't be able to hide behind withholding increases every time they want to raise taxes. When you pay it out of your pocket every time you make a purchase, you will question what the government is doing with your money. Perhaps that is what is needed to keep so many people from being apathetic. I've always thought that if you made every citizen write a check every April 15th, you would see pitchforks running toward Washington. This does the same. Raising it wont be easy for politicians because the impact on the electorate will be immediate and universal.
Conclusion of the article: “Cain said, “Every worker pays 15.3 percent payroll tax.” That’s not accurate. Workers only pay half that, with the exception of the self-employed, as we mentioned above. The worker contribution is normally 7.65 percent, and thanks to the payroll tax rollback of 2010, the number this year is 5.65 percent. You can reach that number only by including the half of the tax that employers pay. Some economists say that if the employers’ half of payroll taxes were ended, workers would see a proportional rise in wages over the long run. But whatever the case, Cain was talking about the reality today. Workers don’t pay a 15.3 percent payroll tax, so we rate Cain’s statement Mostly False.”
Complete crap - it’s all a matter of interpretation. Since the employer is paying you your whole paycheck, and is also paying the FICA and Medicare match, you could make a better case that the employer is paying the entire 15.3%
Your income tax (well, at least my freakin’ income tax) is deducted from my check, via the employer. Does that mean my employer is paying my income tax? I don’t think so.
This whole “employee pays half / employer pays half” Social Security scam is a ruse to minimize the impact of that ill-designed system from the sheeple. These idiots are willing dupes in perpetuating that fraud.
The situation described in the article is correct...to an extent. The following is from Circular E.
"The 2011 employee tax rate for social security is 4.2%. The 2011 employer tax rate for social security is 6.2% (10.4% total). The 2011 wage base limit is $106,800, unchanged from 2010. The 2011 employee tax rate for Medicare is 1.45%. The 2011 employer tax rate is also 1.45% (2.9% total). There is no wage limit for Medicare tax; all covered wages are subject to Medicare tax."
Thus, he is not quite correct. The employee total contribution is capped at $ 4,485.60 for SS with no cap for Medicare (1.45%). So, how much is the combination? Depends.
You pay half and your employer pays half.
If your employer didn’t have to pay it, you would receive it in wages.
For TY2012 FICA is 12.4% (both halves) and Medicare is 2.9%, total 15.3% for payroll. For a self-employed plumber in California who earns $70K, if you include all combined payroll and income taxes (FICA, Medicare, state, federal), the effective marginal income tax rate is 12.4%+2.9%+10.3%+28% = 53.6%.
It seems that 15.3% figure is not far from the mark.
In this case, they won't allow Cain to include the employer's share of FICA and Medicare payroll tax in the cost of employment.
It costs the employer 107.65% of the employee's salary to pay salary and payroll tax for the employee. 7.65% of the salary goes straight to the government as the employer's share. The employer deducts another 7.65% of the salary for the employee's share of payroll taxes. Then deductions are made for income tax, medical insurance, 401k’s, etc., leaving quite a hole in the original salary. But 15.3% of the salary goes to the government.
Politifact is not a reliable source for determining truth.
>>So most workers see only about half the amount Cain mentioned deducted from their paychecks.
And that is the problem! People actually believe that employers pay their payroll taxes and other benefits out of the goodness of their hearts. All of that is COMPENSATION....for your WORK (i.e. hours of your life that you will NEVER get back!). The FedGov has created a nation of fools who believe that a tax refund is like found money and that money deducted from your check was never yours to begin with.
We need a tax where everyone pays and everyone can see the full amount they pay so they can be mad, really freaking’ MAD, when they see how much of their life is spent paying for stupid “programs” and giveaways for political cronies and enemy nations.