Payroll Tax Some Basic Math

majorwhiteapples

majorwhiteapples

5,000+ Posts
2 Month extension
roughly $167/person
150 Million people effected
$25B dollars Gross/Less in SS
$500M in revenue taxes to government
$24.5B in Net dollars to the consumers

12 month extension
roughly $1000/person
150 Million people effected
$150B dollars Gross/Less in SS
$3B in revenue taxes to government
$147B in Net dollars to the consumers

Interesting numbers.....
 
I am for a 12 month extension or none at all. I don't like the 2 month extension b/c now the politicians, I mean congresspersons, are just going to be back at each other's throats in another month. They need to pass meaningful and long-lasting legislation. Not 2 months extensions b/c they don't want to work hard now for the solutions.

A 2 month extension only will mean that those of us who normally max out SS tax in the 2nd half of the year sometime will likely not max out or will max out closer to the end of the year. Normally this extra cash at the end of the year helps stimulate our spending. Without it we will have tighter balance sheets at that time of the year and it will make for a weak holiday shopping season.
 
So why would anyone (Dem or Rep) agree with taking money from the SS Fund?

If you want a tax cut, just take it from the general fund. This drama is stupid on all political fronts...
 
I posted this on another site:

The $33 billion that the payroll tax cut is to take from Social Security funding is supposed to be raised by increasing fees charged by Fannie Mae and Freddie Mac for guaranteeing mortgages over the next decade, as per the bill, now signed into law.

Whether that money will truly be used for such deficit reduction, no one knows.

While analysts disagree whether the fees will further chill the housing market recovery, most if not all agree that these fees spread over a decade will make it much tougher to extract the federal government from the mortgage-guarantee business, which is a loss for those who want to see that happen.

In short, this bill essentially gave Freddie Mac/Fannie Mae another ten years of lifespan, at least. That is not good, in my opinion. We got snookered.

Also, this bill kicks the Obamacare savings from lowering Medicare reimbursement further down the road by applying yet another "doc fix." The idea of Obamacare being deficit neutral is being further exposed as a lie.

So while this bill technically does not cost Social Security, the other costs to our country are much worse.

thought this was a good article: The Link
 
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