"Mason C" <masoncXXX@[EMAIL PROTECTED]
> wrote in message
news:f7sti45df49kg6dvkrtbf7kgrnfk3rhfvs@[EMAIL PROTECTED]
> On Thu, 27 Nov 2008 10:22:50 -0800, "Jeff Strickland"
<crwlr@[EMAIL PROTECTED]
>
> wrote:
>
>>
>>"Michael Coburn" <mikcob@[EMAIL PROTECTED]
> wrote in message
>>news:gglak2624tc@[EMAIL PROTECTED]
>>> On Sun, 23 Nov 2008 09:29:06 -0800, Jeff Strickland wrote:
>>>
>>>> "Mason C" <masoncXXX@[EMAIL PROTECTED]
> wrote in message
>>>> news:pt1hi4h184638pt40eu3olcrgfhnbc8kc5@[EMAIL PROTECTED]
>>>>>
>>>>> But we must keep trying....
>>>>>
>>>>>
>>>> That was one weak-assed attempt at trying anything.
>>>>
>>>> Please address the salient point, should your wealthy neighbor pay
your
>>>> retirement through FICA taxes?
>>>
>>> Most wealthy people don't pay FICA taxes.
>>
>>
>>That is a complete load of ****.
>>
>>Everybody that is a wage earner (is paid on a W2) pays FICA on the first
>>$78,000 of income, or whatever the cut off is these days.
>>
>>Everybody that is a 1099 employee pays FICA when they file income taxes.
>>
>>Everybody is either a W2 (or W4, I forget which and don't care because
it
>>doen't matter here) or a 1099 employee. Even the head of a multi-million
>>dollar company is paid by a W2, and taxes are withheld. Consultants are
>>paid
>>by a 1099. Only relatively low paid self-employed people escape these
two
>>forms of income re****ting.
>
> "Most wealthy people don't pay FICA taxes." Isn't that true?
>
> Most wealthy people do not have *wages* -- they are not "1099
employees."
>
> OK. Let's suppose that's wrong.
> But workers pay more FICA in pro****tion to their income. The FICA tax
> is regressive. The FICA tax is trivial, meaningless, pocket change for
> the
> wealthy. The FICA tax is a killer for low-wage earners.
>
> Suspend the FICA tax to stimulate the economy. It's a quick and
> effective booster.
>
>
But FICA tax is the largest chunk of these worker's retirement. We can
suspend the tax, but retirement goes on. The wealthy (everybody, actually)
pays FICA tax to a ceiling (I forget the exact amount, but it is the area
of
$78,000).
For workers making this amount or less, their income is re****ted by W2/W4
re****ting, or by 1099 re****ting. Except for people that take a draw from
their own company, this is how all income is re****ted. Even dividend
income
from investments is re****ted by 1099. Interest you pay for stuff like
mortgage interest is re****ted on a 1098.
The super-rich are still paid via W2/W4 or 1099 re****ting, but FICA
withholding stops when their wages reach the ceiling, and 1099 workers pay
at Tax Time up to the ceiling.
FICA Taxes are Social Security. If the government stops collecting FICA
but
continues paying SS benefits, then somebody is taking from the rich and
giving to the poor. That's socialism when the government does it, it's
charity when Robin Hood does it.
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