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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (17887)	6/19/1999 11:30:00 AM
From: Les H	Read Replies (1) \| Respond to of 99985

The Federal government cooks the books on both ends. Benefits and tax brackets are indexed to CPI. They lower the CPI through adjustments since 1993. Before 1993, they used historical weights of price components from 15 years back, They've changed it twice since then to 5 years and now to 3 1/2 year old weights. Furthermore, the US government hasn't changed the way in which the ceilings on FICA tax is calculated. As shown below, the FICA tax ceiling grew by $ 4200 or 6.1% or three times the official rate of inflation. No wonder, the government is running a 'surplus' since SS benefits grow much slower with the artificially low COLA and the exorbitant increase in the ceiling shown below increases taxes without need for a vote. FICA wage base Old age, survivors, and disability insurance: and rates 6.2% on $68,400, $72,600 for 1999 (employee & employer) 12.4% on $68,400, $72,600 for 1999 (self employed)