Tuesday, January 1, 2013

the 77%

The right is making a big deal out of the tax 'increase' on the 77% that will go into effect once Obama signs the Republican approved tax bill. This claim is based on the expiration of the 2 point cut in the Fica tax. Keep in mind that this was a Reagan tax on the working poor and middle class while the rich are exempt from paying Fica on nearly all of their income. All of it, if they can avoid wages.

Obama got a temporary cut in Fica taxes that was made up for out of general revenue for the Social Security Trust Fund in order to stimulate the economy. Fica should be reformed so that the first $20,000 is exempt while there is no upper limit. Republicans like 'flat' taxes, right? Of course they do, if they don't have to pay it. Ha ha ha ha ha (my best 'The Shadow knows' voice) 


Dave said...

My only concern about exempting so much income from the Social Security tax is that it forces low-income earners to "not-pay-for-it" as it were.

There's already enough talk about "entitlements" and whether we should have them as it stands. Part of what makes it hard to get rid of or privatize Social Security is that we all paid for this insurance and it better bloody well pay up!