martybegan
Diamond Member
- Apr 5, 2010
- 85,183
- 35,692
- 2,300
FICA is a federal tax on income. AKA a federal income tax. No quote/unquote tags necessary.
Actually...in all fairness....the quotes really are necessary.
Unlike typical income tax.....FICA is a tax that you get back in dollars....not services.....
SO whereas it is a tax, it is really a "forced savings"......and there is a difference and thus why it has its own separate box on thye tax form.
You don't get back your FICA. It's a transfer payment, just as any other social program is a transfer payment. It's taxing 1 person in order to fund another. and like most federal social programs, the transfer occurs via a tax on income.
It is NOT like a transfer payment, as with others you do not get a tangible benefit back. For SS you are paying in and getting paid back at a later date, period. A true transfer payment is like welfare, when you have never used welfare.