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Last I heard, Obama's primary campaign said he didn't want to raise taxes on those making less than 250K and he only wanted to let the Bush tax cuts expire for a certain percentage (the 95%) of the population. All I heard was Obama saying he wants to make the wealthy pay "a little extra".
It's all a matter of spin. Obama couldn't or didn't want to say he wanted to let all Bush tax cuts expire.
But overall, the payroll tax is regressive. It is capped at a higher income, which means that lower earning workers pay it on every dollar of income while higher earning workers pay it only up to a certain income and those that earn their income from investments do not pay it at all.
Oh, good grief. Not this again.
It's NOT regressive. Since the 1990's, higher income earners have been LOSING money on Social Security. They get LESS back in SS benefits than they paid into the system throughout their working years. That has now spread to the middle class. The middle class now alsoLOSES money on SS. They will also get LESS back in SS benefits than they pay into the system throughout their working years. The ONLY group that gets MORE in benefits than they've paid into the system are the low-income. That's PROgressive, not regressive.
Wow we agree. Why Obama and Congress thinks that millions of decision makers don't know how to mobilize the economy while they do is the epitome of central planning. I recall even in a high school business class that dollars were votes for the best product. i guess I was taught wrong.
It's NOT regressive. Since the 1990's, higher income earners have been LOSING money on Social Security. They get LESS back in SS benefits than they paid into the system throughout their working years. That has now spread to the middle class. The middle class now alsoLOSES money on SS. They will also get LESS back in SS benefits than they pay into the system throughout their working years. The ONLY group that gets MORE in benefits than they've paid into the system are the low-income. That's PROgressive, not regressive.
What you are discussing is benefits. The issue is taxation.
For 2013, you will pay Social Security taxes on income below $113,700. That means anyone earning less than that amount will have all of their income taxes at the SSA rate. If I am a CEO earning millions, I will pay SSA tax on the first $113,700 and nothing more. That's a prime example of regressive.
What you are discussing is benefits. The issue is taxation.
Payroll tax... one's benefits ARE related to one's taxation. Look at the SS statement you receive periodically.
Quote:
For 2013, you will pay Social Security taxes on income below $113,700. That means anyone earning less than that amount will have all of their income taxes at the SSA rate. If I am a CEO earning millions, I will pay SSA tax on the first $113,700 and nothing more. That's a prime example of regressive.
No, it is not. Your benefits would be capped, as well. In fact, you would receive FAR LESS back in SS benefits than you paid into the system throughout your working years. That has been true for higher income earners since the 1990s. That FACT is documented by the SSA. Read the AP article I linked. The SSA ADMITS that this, in fact, is true.
You cons love regressive taxes. So what's the problem?
Payroll taxes aren't regressive. The Medicare tax is paid on all taxable income. The SS tax is capped, but everyone LOSES money on SS except the low-income. The SSA has already admitted that.
Payroll taxes aren't regressive. The Medicare tax is paid on all taxable income. The SS tax is capped, but everyone LOSES money on SS except the low-income. The SSA has already admitted that.
I don't think you quite covered who loses the most.
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