UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: elixe Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1947621  
Subject: Who paid for Bush era tax cuts? Date: 12/31/2012 2:03 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 29
A case can be made that OASDI Payroll taxes on working poor and middle class helped pay for the tax cuts of the wealthy.

Over the years the 2.7 trillion in current OASDI trust funds were transferred to the General Fund to be used for non entitlement purposes. The wealthy were exempt from FICA taxes on income in excess of about $100 thousand, while those with less then $100 thousand income were taxed regardless whether it was taxable or not. (A rate of 4.2% last year, 6.2% prior to the Tax Relief Act).

So even if a poor worker had zero taxable income, he still was taxed on earnings.

(Note that the Trust Fund consists of Government Bonds that are backed by the Full Faith and Credit of the U.S. Government).

Now the wealthy want to reduce SS benefits to resolve a future problem that might occur after 2021. (When the trust fund is projected to begin running out, outgo exceeds income).

Perhaps a way to solve the current financial quandary is to increase the tax rate an additional 4.2% on all earnings in excess of $100,000 regardless of amount?

Seems like a fair way to me to resolve the issue of the poor and middle class paying for the Bush era tax cuts.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement