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To: GraceZ who wrote (26040)2/8/2005 2:19:02 PM
From: Roads End  Read Replies (1) | Respond to of 110194
 
You rightly point out the games played to avoid payroll taxes, games not available when the SS system was designed, options, sub S, etc. I’ve been known to use them too.

Precisely because definitions and types of income have changed over the life of SS it should be argued the base on which to apply the tax should not remain unchanged. Compensation regularly occurs outside the narrow definition we use today and should be considered fair game.



To: GraceZ who wrote (26040)2/8/2005 2:32:48 PM
From: Larry S.  Read Replies (1) | Respond to of 110194
 
Grace A. Zaccardi,

Interesting comments/thoughts. I've had similar experience with those in our Government. But, before I retired I worked with some smartest people in the world and you know, looking back, we weren't always right either.

I have also, unfortunately, had a lot of experience the past few years dealing with Medicare and various private insurers, most recently Untied Health Care. I am amazed at how good Medicare seems to be. Claims are almost always processed correctly; though their rules are enough to drive any sane person crazy. On the other hand, none of the private insurers seem to be able to process two claims in a row correctly. The cost to them of reprocessing must be tremendous.

Yes. most of their errors are failures to pay what they should but they also pay when they shouldn't and never go back to redeem their over payments. However, the spend a fortune chasing down information. If it weren't for the fact that many of the insured don't have a clue, they would all go bankrupt.

I spent years arguing against any government programs but no more. I never thought I would say it, but there are things the Government does better than a for-profit organizations. However, Medicare costs is the problem we should be focussed on, not SS, and it will not get better until we recognize that we can't offer everyone every new development that comes along.

Larry



To: GraceZ who wrote (26040)2/8/2005 3:03:30 PM
From: Chaka  Respond to of 110194
 
>Most of my clients do this already because they are all self
>employed in a bracket where they max out SS payments. So they
>pay themselves a very small wage and take the rest of their
>earnings as dividends.

Hussman had a nice tax reform idea - have flat income tax but remove the income limit on SS taxes and apply SS taxes to all earnings including capital gain and dividends.