Here’s an interesting question: what would the government’s response be if an employer failed to report such information and the employee did not object? All it would mean is that the employee would not accumulate SS benefits, which would save the government that future liability.
For example, if the FairTax were adopted, and I as a small business owner did not report any income to the SSA, would the government care? Regardless of what system of taxation we have, I think I have better odds of winning the lottery than ever collecting anything from Social Security, and I don’t even play the lottery. I certainly don’t want senior citizen welfare, nor do I base any financial planning on receiving any of it. I can’t imagine the government auditing anyone to force them to become eligible for a potential future transfer payment; I certainly wouldn’t worry about filling out whatever forms they may develop for such a purpose.
I realize from other threads that you are opposed to such reforms. But don’t you think that under the FairTax, SS would become essentially a voluntary system, since there are no longer taxes supposedly collected specifically for SS?
What if's are fun aren't they...The Fairtax is full of them.
But don’t you think that under the FairTax, SS would become essentially a voluntary system, since there are no longer taxes supposedly collected specifically for SS?
Fair Tax Act of 2005 (Introduced in House)
`SEC. 101. IMPOSITION OF SALES TAX.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
`(1) FOR 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.
`(2) FOR YEARS AFTER 2007- For years after the calendar year 2007, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3)) of the gross payments for the taxable property or service.
`(3) COMBINED FEDERAL TAX RATE PERCENTAGE- The combined Federal tax rate percentage is the sum of--
`(A) the general revenue rate (as defined in paragraph (4), and
`(B) the old-age, survivors and disability insurance rate, and
`(C) the hospital insurance rate.
`(4) GENERAL REVENUE RATE- The general revenue rate shall be 14.91 percent.
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`(d) Old-Age, Survivors and Disability Insurance Rate- The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies.
`(e) Hospital Insurance Rate- The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies.
`(f) Assistance- The Secretary shall provide such technical assistance as the Social Security Administration shall require to determine the old-age, survivors and disability insurance rate and the hospital insurance rate.
Dream on...That's the real reason your earnings have to be reported.