Many federal taxes levied on the population that are seldom mentioned.
This one hits the middle class.
Payroll tax (Social Security) is levied on a specific amount of annual compensation. As i recall it used to be about an increase of 3% a year.
It grew this year from $147K to $160,200 in 2023.In other words you are your employer pay 6.25% of your income to social security annual up to this year $160K in salary /compensation.
I remember when it was 1/2 of that.
Do you ever recall anyone making this public?
Increased fed taxes on you phone bill? Were you made aware?
This is tough of people in general and companies.
The increase in payroll tax probably due to inflation but it has been climbing much larger that 3% for some time.
These SS increases do not hit the wealthy (no big deal) or the poor (will never hit the pinnacle amount) but they do the middle class where by no more monthly deductions from your payroll once you hit the max contribution.
Taking more home for these folks.
If and when SS goes belly up. That is when the general public will clean out Washington and start over.

EZ

The Social Security system won't go belly up. That's because there is no SS fund.

SS payments are funded in our annual budget. Can you imagine the uproar of senior voters if one year Congress refused to fund SS? The people in Congress often do silly things, but they're not suicidal.

Wait until the repugs cut social security .....

That will be fun to watch as the losers like Ann here who live off the government get fucked.

quote:

Originally posted by eezridr:
Many federal taxes levied on the population that are seldom mentioned.
This one hits the middle class.
Payroll tax (Social Security) is levied on a specific amount of annual compensation. As i recall it used to be about an increase of 3% a year.
It grew this year from $147K to $160,200 in 2023.In other words you are your employer pay 6.25% of your income to social security annual up to this year $160K in salary /compensation.
I remember when it was 1/2 of that.
Do you ever recall anyone making this public?
Increased fed taxes on you phone bill? Were you made aware?
This is tough of people in general and companies.
The increase in payroll tax probably due to inflation but it has been climbing much larger that 3% for some time.
These SS increases do not hit the wealthy (no big deal) or the poor (will never hit the pinnacle amount) but they do the middle class where by no more monthly deductions from your payroll once you hit the max contribution.
Taking more home for these folks.
If and when SS goes belly up. That is when the general public will clean out Washington and start over.

EZ

Every year there are numerous articles about SS on various financial websites and something like Yahoo Finance that discuss upcoming changes like you mentioned. AFAIK they don't try to keep it a secret.

quote:

Originally posted by RolandtheHeadless:
The Social Security system won't go belly up. That's because there is no SS fund.

SS payments are funded in our annual budget. Can you imagine the uproar of senior voters if one year Congress refused to fund SS? The people in Congress often do silly things, but they're not suicidal.

Things will get interesting, now that we're into the era of negative cash flow for Social Security.
I idly wonder who will buy the assets of the Trust Fund as that liquidation is needed (especially the low-interest T-bills).

Politician = low down lying thief.

quote:

That's because there is no SS fund.

I believe there was. Not to !mention All Gore's lock box.....whatever happened to that?


.

The SS payroll tax is a tax on the employer, but as to the employee, it's more of a forced savings program. Until they do what is inevitable and take it away from the "rich". Then, it's not a tax either, it's a theft.

quote:

Originally posted by RolandtheHeadless:
The Social Security system won't go belly up. That's because there is no SS fund.

SS payments are funded in our annual budget. Can you imagine the uproar of senior voters if one year Congress refused to fund SS? The people in Congress often do silly things, but they're not suicidal.

That's something trump wanted to do, but it's not being done now.

Here is something to read.

soc sec

This from the link is a very nutshell summary of what happens to funds paid into SS. If they aren't needed to pay benefits then the treasury borrows them to pay other obligations.

"The Social Security Act provides that the funds are maintained “on the books of the Treasury.” The Treasury manages the Social Security accounts in much the same way that a bank manages a checking account: Accurate accounts are kept of the cash deposits and the accruing interest; cash (plus interest) withdrawals are allowed whenever needed; and in the meantime, the bank can put the cash to other uses. Thus, the Treasury uses procedures that fully and accurately account for the cash from trust fund tax income deposited with the Treasury and the interest that accrues on those deposits. Until the invested amounts are needed to pay benefits, the cash is intermingled with the Treasury's cash operations for the rest of the government. The size of the accumulated reserves is tracked by special Treasury securities. Those securities are issued to the trust funds both when cash from tax income is deposited and when interest is paid on the invested reserves. When Social Security benefits are paid, trust fund securities are redeemed for the cash to pay beneficiaries."

IIRC the taxes collected from taxing SS benefits are kicked back into the SS fund. You can download and read the Trustees' report on the status of SS if you care to do so.

Why is it referred to as a trust fund????

Have social security remittances always gone to the general fund????


.

quote:

Originally posted by JTEX:
Why is it referred to as a trust fund????

Have social security remittances always gone to the general fund????


.

I believe that there is a rule or law of some sort thaat Government agencies can't accumulate or hoard large amounts of cash so SSA can't sit there with $6 trillion in cash while the Treasury is borrowing to cover some of its obligations. Still their share is kept track of.

IIRC the general fund's IOUs to SSA [which is part of the national debt] might be a couple trillion dollars and is likely why SSA is still considered solvent.

Go to the SSA site or Google its history for the answer to your first question.

The Republicans have introduced a bill this week to do away with income tax in return for a 25% value added tax.

Are they out of their freaken minds.

We need less taxation not more.

This fucks all retired people, people at the lower end of the income spectrum and self employed the hardest.

It decimates small retail businesses.

Forget about SS, this republican house is out to destroy the economy.

quote:

Originally posted by 300shooter:
The Republicans have introduced a bill this week to do away with income tax in return for a 25% value added tax.

Are they out of their freaken minds.

We need less taxation not more.

This fucks all retired people, people at the lower end of the income spectrum and self employed the hardest.

It decimates small retail businesses.

Forget about SS, this republican house is out to destroy the economy.

Except none of their bullshit stuff will ever pass.

Thought I read this morning that Yellen was going to borrow from the government retirement fund to pay bills until the debt threshold was raised.
Not certain if this was SS she was referencing.
Yellen is just another government appointed boob.

quote:

Originally posted by eezridr:
Thought I read this morning that Yellen was going to borrow from the government retirement fund to pay bills until the debt threshold was raised.
Not certain if this was SS she was referencing.
Yellen is just another government appointed boob.

No, it's not from SS. They should not pay Congressional salaries or those of their staff either.

https://www.aol.com/finance/u-...limit-161812637.html

From the link.

"As part of that, the government will not funnel new investments into the Civil Service Retirement and Disability Fund, as well as suspend investments into a retiree health benefits fund for retired post office workers."

quote:

Originally posted by JTEX:
Why is it referred to as a trust fund????

Have social security remittances always gone to the general fund????


.

I think I remember reading that the Social Security surpluses were borrowed by the Treasury.

Last few years there hasn't been a surplus to borrow.

quote:

Originally posted by lavaca:
The SS payroll tax is a tax on the employer, but as to the employee, it's more of a forced savings program. Until they do what is inevitable and take it away from the "rich". Then, it's not a tax either, it's a theft.

You are out of step with Trump....get with the program.