Are we an America that believes we should no longer pay the full, designated percentage of our paycheck into our personal contribution to Social Security and Medicare? I believe we are. There is outrage on the streets that workers must now begin again to pay into their own SS and Medicare funds, reduced from 6.2% to 4.2% for years 2011 and 2012 – a “holiday” they called it, for the employee, but not for the employer who pays half of the total 12.4% into your account. It would “stimulate” the economy, they said. Did you run out and buy, buy, buy things that you normally would not buy with that 2% more in your paycheck? If your income was $50,000, you would have had about an additional $1,000 in your paycheck via $42 “per biweekly paycheck.” I bet most of us paid our electric bill or took the kids to the doctor, rather than taking a vacation or buying a new wardrobe. And I bet most of us didn’t know ObamaCare would slam another percentage onto your Medicare tax. It does.
A “business professor” says we cheated the Social Security system by 16% over the past two years. Who do you think should provide your Social Security for you in your elder years?
The term Federal Insurance Contributions Act is a joke. Why are we not demanding that our FICA deposits be put into a fund that is hands-off by politicians – the “Lock Box” it was once called? “Demanding” means that our government collapses, because spending demands “they” have your FICA at their fingertips to spend as at “their” bloated pleasure – every day. The money that generations of workers have put into the fund has been stolen by the elected in this country. When you open the box with no lock on it, you’ll find a piece of paper, an IOU from the “government” that is worthless, and so huge it can never be paid back. Think of the interest on that money that could have been earned, and could be used to pay toward Social Security for all those many who never paid a dime into it, as well as securing your retirement to some small extent. Social Security and Medicare deposits going into the U.S. Treasury’s General Fund is something to get worked up about.
The salary cap on Social Security taxes went up in 2013 to $113,700 from $110,100 for 2012. There is no salary cap on Medicare taxes, with this exception: If your income is $200,000 or higher, your Medicare tax on your entire income was raised by .09% in January 2013 to enhance ObamaCare. If my calculator is accurate, adding .09% to the existing 1.45% tax brings the old Medicare tax of 1.45% to 1.54%. In other words, now that we are rightly paying full Medicare taxes again, those taxes have been hiked by .09% to pay for ObamaCare, which intends this tax to pay for the masses who will contribute nothing at all – a program that will fail. If you do not hate ObamaCare now, trust me, you will soon.
What a pity we are so dense. So many know nothing about true tax reform, about fighting fiercely for a Fair Tax (learn more here) or flat tax that would cull down the huge bureaucracy known as the IRS, get rid of the hundreds of dollars we pay annually to a “tax preparer” and put us in control of paying our fair share. We cannot save the economy (or your family) through payroll tax holidays. True reform to Social Security and Medicare are essential, but the problem this minute is our spending…the enormous spending and waste of those we elect and send to Capitol Hill. We, The People, buy snake oil, some forced to do so, some waiting in line for all they can get. The outrage is our blighted and unfocused outrage. If the video below disappears or does not play, view it at Daily Caller. Watch for the Jamba-Juice-Guy who thinks if Federal taxes have to go up, they have to go up. He hasn’t a clue about FICA taxes, and the man and woman who complain that their taxes went up in this pay check, but…they still have potholes on their streets. These two people, who are not all that far from receiving Social Security and Medicare, know nothing about through what means they will receive their own Social Security and Medicare benefits.