The current Social Security payroll tax is 12.4% (there is an additional 2.9% for Medicare).
Pete Domenici, R-New Mexico, would eliminate the 12.4 percent Social Security payroll tax for one month.
Second, Forbes ignores the 12.4% Social Security payroll tax (split between employer and employee).
The initial Social Security payroll tax in the late 1930s, for instance, helped send the economy into a tailspin.
Most important is the expiration of the 2% Social Security payroll tax cut.
Workers under the proposed plan were empowered to choose to save and invest in the accounts just half the Social Security payroll tax.
Speaking Tuesday in Annandale, Virginia, Mr. Obama came out for lifting the cap on income on which the Social Security payroll tax is applied.
But this estimate excludes unspecified increases in the Social Security payroll tax that would almost inevitably be included in a reform of the retirement program.
The greatest threat to the integrity of the Social Security system was removed by allowing the temporary, 2-percentage-point reduction in the Social Security Payroll tax to lapse.
Yet, the President proposes now in his Jobs Plan to expand that to another, temporary, one year, 50% cut in the Social Security payroll tax for both workers and employers.
FORBES: Instead Of Obama's Jobs Plan, Pass Something That Will Work
That this temporary cut in the Social Security payroll tax enjoyed bipartisan support a year ago shows the extent to which the Keynesian Superstition pervades both of our political parties.
FORBES: Don't Extend The Ill-Conceived, Evil Payroll Tax Cut
Finally, the integrity of the Social Security system and its financial strength should be protected by allowing the temporary 2 percentage-point reduction in the Social Security payroll tax to lapse.
To achieve this, he agreed to raise the rate of the (relatively efficient) Social Security payroll tax, thereby helping to protect that flawed system from suffering operating deficits for more than 25 years.
To briefly review the bidding, in late 2010 Congress backed a plan by President Obama cut the employee share of the Social Security payroll tax from 6.2 percent to 4.2 percent for 2011 only.
Most conservatives, and Republicans, would like to reform Social Security so that workers could put a portion of their 12.4 percent Social Security payroll tax into a personal account that they own and control (under certain restrictions).
The bill empowers each worker age 50 and below with the freedom to choose a contribution to a personal savings and investment account equal roughly to half of the employee share of the Social Security payroll tax.
FORBES: Social Security Personal Accounts Are A Path To Prosperity
Senate Republicans, meanwhile, pushed for more tax cuts, such as a one-month Social Security "payroll tax holiday" for employers and employees, and tax cuts for businesses.
That, Sullivan observes in a blog post here, is a lot lower tax rate than the Helmsley building janitors likely paid, when Social Security and Medicare payroll tax rates are figured in.
FORBES: A Low Tax Rate That Would Have Made Leona Helmsley Proud
Nice sound bite, but he's deliberately mixing up the income tax with the Social Security portion of the payroll tax.
More income would be subject to the Social Security payroll (FICA) tax.
In their 1998 report, the Trustees projected that Social Security outlays would exceed dedicated payroll tax revenues in 2013, which was then 15 years away.
The payroll tax for Social Security is 12.4% (split between employer and employee).
That is because the personal accounts finance so much of the future benefits of Social Security that future deficits between continuing payroll tax revenues and continuing benefit obligations of the program are eliminated entirely.
FORBES: Social Security Personal Accounts Are A Path To Prosperity
As a result, same-sex couples could pay as much as double the payroll tax that finances Social Security that an opposite-sex couple would pay.
On top of that, the cut in the payroll tax that funds Social Security will expire, meaning those same middle class families will get hit twice.
FORBES: Democrats Play Blackmail With Taxes: GOP Should Call Their Bluff
His proposal scraps the entire existing code, including capital gains, interest and dividend income, the estate tax, and the payroll tax that funds Social Security and Medicare.
FORBES: Dial 9-9-9: The Most Exciting Policy Proposal Of The Presidential Election Campaign
That contribution would be financed by a payment each year from general revenues, with no reduction in the payroll tax revenues flowing into Social Security.
FORBES: Social Security Personal Accounts Are A Path To Prosperity
With Social Security, we could make adjustments to the payroll tax.
But the Congressional Research Service found in 2010 that doing away with the payroll tax cap would keep Social Security solvent for at least the next 75 years.
Today your pay is taxed for Social Security, and you pay income tax on that payroll tax.
应用推荐