Personally I thought the 2% cut in SocSec taxes was one of the dumbest tax moves in Congressional history. I'm not sorry to see it go if it does. But the gist of this story is really how all Americans are just pawns in a daily chess game in Washington. No concern for the impact on individuals or businesses who have to implement this stuff and explain it. Just constant maneuvering on both sides to see who can squeeze the best sound bite out of the situation or phrase the conversation to their advantage. The whole crowd really is disgusting.
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"The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
The only purpose of the 2% reduction in SS was to give one more freebie to the group who pay no taxes. If there was an income tax rebate as in the past, that group wouldn't have received one because they don't pay any income tax.Jiggers, EA -
Solution to the problem
The only solution to the problem is term limits.
One term in congress and
one term in prison.Comment
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I like that !"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Shell game
Since the Social Security "tax cut" is basically NOT putting the required funds into the coffers of those who will (might?) receive Social Security somewhere down the road, I've always likened the "tax cut" to the following:
Step 1 - Person is regularly paying into an escrow account, along with his monthly mortgage P+I payments, funds to cover other expenses
Step 2 - Along comes some elected official and removes the requirement for placing funds, allocated for property taxes and insurance, into the escrow account
Step 3 - Homeowner rejoices!! Spends windfall money on whatever....maybe even some Powerball tickets?
Step 4 - But later in the year the homeowner receives a large bill, payable immediately, for the property taxes and insurance
Step 5 - Homeowner screams, cries, rends clothes into small pieces, blames the evil rich folks, ..... and asks for a handout because the homeowner simply has no funds available
Step 6 - Government figures out some way for the monetary problem to go away. SHAME on those nasty bankers!!
Step 7 - There is much excitement in the land, and the homeowner definitely KNOWS who will receive his vote next election!
FEComment
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This has to be the best posting on this board since it's inception.
A very powerful message and truth to the whole mess "we is in"!Jiggers, EAComment
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Can't agree
entirely with Feduke's analysis, for this reason:
Workers are taxed and those funds, whether 6.2 or 4.2% go into the giant SS fund in the sky.
However when workers retire, their benefits are not based on taxes paid, but on earnings recorded.
I'm with everybody however, the 2 % cut was a really DUMB move. Now, somebody explain that to our clients. (grinChEAr$,
Harlan Lunsford, EA n LAComment
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Personally, I'm in favor of eliminating the multiple types of federal income taxes and simplifying federal income tax down to just one tax. We can adjust the tax rates to make it work. If we set a marginal tax rate of 40% on people currently in the 25% bracket the marginal tax would basically stay the same, and then we can have a reduction in tax rates for higher incomes, to match the current system.Comment
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