Hypocrisy: Outrage Over FICA Payroll Tax Re-Instatement (Hike) – The Stupid Holiday is Over

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.

Payroll Tax Holiday

Payroll Tax Holiday

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.

Washington D.C. Residents on their Reduced Paychecks (video)

  • Throw all the bums out

  • that idiot that would back obama no matter what.. “It will only hurt for a minute” Really you idiot.. a minute? What wonderful sheep he is.. a libs wet dream of a voter..

    • David, I wish the interviewer had explained a little about this to them, just to see the look on their faces.

  • Are people really that dumb? Why was the tax put on holiday to begin with? Votes folks, votes for Odummer. Nothing more nothing less, just a lot of BS.

    • Woodsterman, Exactly right, but they haven’t a clue about their own future either way. The government will never let go.

      • Oops, that should have replied to Woodsterman. Sorry.

    • Dallas, yes it was all for votes and Republicans were right in there, making sure it happened.

  • I just can’t get it how people could forget about paying into their own social security and medicare fund. And if something happens, they shout for help. US citizens should be more responsible for themselves, it’ okay when you are young and healthy you don’t care about pension or medicare or social security, but if something happens, you are quick in trouble. That’s what social and personal responsibility should be, and that’s what US citizens should understand and learn again.

  • DUH! Social Security is in the tank kids. You insist on continuing this loser system, so you losers can pay for it.

    Now … sit down and do some math. Take you income each year and multiply it by .15 (for 15% loser) (Yes I know you only pay 7.5%, but your boss also pays 7.5% to the government when he could of paid you.) And add each year to a running total. Also, add the product of .06 (earnings like interest, dividends, etc.) X each yearly total. Do this for 40 years. Hey loser, you would have been a millionaire if the government weren’t involved, HUH.

  • These useful idiots have no one to blame but themselves. They voted for Obama and now have to live with the consequences of that vote.

    This will be a painful lesson for them (and us).

    • findalis, I think we need a painful lesson (not that we haven’t already had several). The truth is, we need it to hit hard so that this never happens again.

  • WOOF

    Workers pay all 12.5% of FICA with their labor.

    • WOOF, are saying that half of the 12.% comes out of your pay check but you work so hard that you actually pay the entire amount?

  • Oz

    Reminds me of Leno’s “Jaywalking” (?) bit.