On Thu, 27 Nov 2008 12:02:57 -0800, Jeff Strickland wrote:
> "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.
Understand this: FICA taxes are paid as a consequence of WAGES ONLY.
There is no FICA tax on other forms of income. Self employment income is
considered to be wages so a sole proprietor that is not incor****ated will
pay self employment tax which is actually a tax on wages. 1099 be damned
because interest income and the like are also re****ted via 1099.
This is the reason there are so many one man sub S cor****ations or family
sub S cor****ations. Profit distributions from such cor****ations are not
wages. They attract no FICA tax. So the "smart" people make themselves
a sub S cor****ation and pay themselves a chickenfeed wage (like $500 a
month) and pay the 15% total FICA tax on it. The accounting profits
after paying the wages (a one man software company) and writing off the
home workstation (PC system) then avoids the FICA tax.
Only the poor bastards that have to suck a bosses ass and have a JOB pay
FICA taxes. But this is the vast majority of the people. If the FICA
tax is abandoned then the "smart" people get the weenie and the real
producers get a better deal. The real point is that these people have
more income to spend. And spend they will.
This means that the government can choose to go into debt, or the
government can just print money, or the government can raise the income
taxes on the people who currently pay such taxes. Pick one or more.....
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