Syphon
Rookie
- Feb 22, 2012
- 1,449
- 84
still the employee rate is only 6.2%. not 15% like you claim. its a failed argument to say that the employer would give the employee a 6.2% raise just because he does not have to pay the employee portion of ss anymoresocial security is currently a 4.2% deduction for employee, the employer pays 6.2%And think how much more you could be putting into that 401K if you were receiving that 15+% social security deduction instead of it going to the feds. (I know, your employer has to pay half of it, but if he didn't have to pay that, he would be able to pay the employees more and many would.) My husband and I being self employed for the last several years of our working life had to pay it all and it would have been great to have had it to put into our 401Ks.
America has never just allowed people to starve but have always been the most generous and giving of any society on Earth. That was true before there were entitlements and that would be true after entitlements ended. The most significant thing that separates conservatism and liberalism is that liberals seem to think if the federal government doesn't do it, it won't get done. Conservatives believe that there are far better ways to do most things than leaving it to the federal government to do. Most especailly since the federal government swallows up huge amounts of resources just to feed its own bloated bureaucracy and that money isn't then available to help anybody.
A person who put 7 to 10% of his/her wages into an intellegently managed and invested 401K beginning in his/her 20's will almost certainly retire a millionaire. And the money is his/hers to be used as s/he sees fit and to leave to his/her heirs if there is money left over.
A person who depends only on social security will likely retire below or close to the poverty line, will likely qualify for food stamps, and the money is not his/hers to use as s/he sees fit but is doled out in pittances by the government who, by the way, does not HAVE to pay it but could legally end the program at any time and confiscate the money for any other purpose. And if you die before you collect social security or before you collect all that you paid in, the government keeps it. Your heirs don't get it. It is gone. Swallowed up in the bureaucracy.
There simply has to be a better way.
Social Security Withholding - Payroll Tax Holiday for 2011 and 2012
And that is a temporary rate established as a bone the President threw to us so he could claim that he cut taxes. Why cut it on social security that is already gushing red ink is anybody's guess, but the tax (including Medicare tax) will go back up to a combined employee/employer rate of 15.3% if the Congress doesn't keep renewing the tax relief. And you can just about guarantee they won't renew it if there is a Republican president and a Democratically controlled House or Senate beginning in January because the Democrats will call it a tax hike and blame it on the President.
the medicare tax, is not part of ss. you need to differentiate your argument. are you talking about ss, medicare, medicaid, or all federal taxes?
if you are talking about ss, all employees would see is either a 4.2% or 6.2% increase in before tax earning. this money would be taxable as income though under income tax rules.
technically it will be a tax hike whenever it goes back to the 6.2% rate. the same way the republicans are saying that when the bus tax cuts expire there is going to be a tax hike on everyone. not sure what your point of the argument is here....
can you try all you want to prove that employees would get a 15% pay increase just because ss is gone, but that doesnt make it true