Hardball_Refuge
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- Oct 12, 2011
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- #21
-Not when it comes to social security payroll tax: The report says moderate-income taxpayers bear the brunt of the Social Security payroll tax because it applies only to the first $106,800 in wages.If they pay on unearned income as capital gains or as interest or dividend income, or if they deduct large parts of their income for foundations which go to worthy charities, then yes a lower percentage rate, but many multiples more than the ordinary middle class American.
And that's fair because FICA is in reality not a federal income tax, it is funds paid into an account for the eventual benefit of the contributor. FICA means the "Federal Incurance Contribution Act," and it is an insurance premium paid to the feds for the eventual benefit of the payer.
If that contribution is to be considered as simply federal taxes there is a danger that the program could become regarded as just another welfare program, and subject to the same cuts or revisions as happened in the nineties with Clinton and the Republican congress. to welfare
There is a limit to how much a wealthy tax payer can draw and there needs to likewise be a limit to how much they are required to pay, or as I say, it becomes just another transfer of wealth welfare program. The politicians, even Democrat politicians, realize this and steer away from elimininating the ceiling on contributions for higher earners, up to now.
FICA is in reality not a federal income tax, it is funds paid into an account for the eventual benefit of the contributor. FICA means the "Federal Incurance Contribution Act," and it is an insurance premium paid to the feds for the eventual benefit of the payer.
-This is a good point, however, let's face it, since the program's inception there was never a guarantee that what one pays into the system will equal what one get's paid out.
There is a limit to how much a wealthy tax payer can draw and there needs to likewise be a limit to how much they are required to pay
-Agreed. That being said, It seems to me the cap should be increased...
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