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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (10648)	3/29/2004 8:34:16 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 81568

Taxpayer B is still paying 25k more in taxes. Taxpayer derives no additional benefit and actually SS benefits will be almost the same This is the big scam I'm trying to point out. There will be NO BENEFITS to people my age and younger under SS. It is a tax pure and simple in my view and it needs to be reallocated to the general fund until the system can be reworked. The new estimates are that medicare is insolvent as of 2020. In silicon valley the IT workers are 1099 which means they pay all the FICA taxes, there is no employer match and besides that additional payroll tax is a hindrance on hiring which we need to rework anyway. If you eliminate the FICA piece of this picture which is similar to ignoring the employer match, then its a different story because you are looking at a full 9K more in taxes paid by the 80-90K person or 10%. A lot.

To: Logain Ablar who wrote (10648)	3/29/2004 9:59:45 PM
From: Jagfan	Read Replies (2) \| Respond to of 81568

The way I see it (being a small business owner), the match is coming out of individuals' pay. If I didn't have to match the FICA they would have a higher salary.

To: Logain Ablar who wrote (10648)	3/29/2004 10:16:01 PM
From: CalculatedRisk	Read Replies (3) \| Respond to of 81568

This is a common question: Who pays FICA? Lets take 3 examples with an employee making $10 per hour (no other benefit, starting with current situation). 1) Current situation (rounded off to 7.6% each): Employer pays $10.76 per an hour of labor. Employee receives $10.00 gross, minus another $0.76 FICA. Total FICA payment $1.52 2) Employer pays all: Employer pays $10.76 Employee receives $9.24 Total FICA payment $1.52 3) Employee pays all: Employer pays $10.76 Employee receives $10.76 gross, minus $1.52 FICA Total FICA payment $1.52 All three are the same! Who paid the FICA in each case? The answer is the employee (unless you are analyzing labor costs for the employer, but that is a different question). The employee is paying $1.52 in taxes on $10.76 in income. The reason the employee "paid the FICA" is that the employee receives the entire (and same) future benefit under all 3 plans. The company doesn't care if the $10.76 went to the employee as take home pay, insurance, FICA or any other expense. I hope I explained this clearly.