Skip to comments.Crunching the numbers of the 2013 tax increases (It's official - the rich now pay their fair share)
Posted on 01/13/2013 1:42:07 PM PST by Libloather
WASHINGTON - The prospect of the American economy careening off a cliff overshadowed a tax increase that takes effect immediately, rich or not.
Even with the deal on Capitol Hill, the so-called payroll tax is scheduled to bounce back up to 6.2 percent from 4.2 percent in 2011 and 2012.
In practical terms, this amounts to a $1,000 tax increase for someone earning $50,000 a year and a $2,200 tax increase for someone earning $150,000.
Even workers taking home less than $20,000 annually will be impacted, paying roughly $100 more.
"I think it will have a negative effect," says Neil Buchanan, a law and economics professor at George Washington University.
(Excerpt) Read more at wtop.com ...
A fake employee making minimum wage might even qualify for EITC ~
There are people who are not incorporated who hire employees ~ your friendly neighborhood bodega for example ~ he'll have half a dozen part timers through the week, and it's probably quite easy for him to create another employee who earns tax free income ~ which he figures out how to keep for himself.
People deep into the multiple identification world have a leg up on this stuff. Create a fake doctor to refer you to workman's comp for your whatever.... can be done. is done, but that's a different piece of business.
Regarding US savings bonds, we thought (and this is official united states gub’mnt type thinking) they were having their fake hispanic surnamed employees buy us savings bonds so they’d seem patriotic ~ to throw the T-men off their trail.
Ludicrous. You’re right, though, it sounds like a theory a government employee might develop.
Jim - even those making over the FICA cap will see their taxes increased on that amount of income.
Nothing you are saying makes sense. Yes, of course I meant to pay dividends to yourself—as shareholder, that is how you receive profits.
Every bond had to be checked for a forwarding order and then reissued ~ that sort of thing costs money when you do it by the millions of units!
My general understanding is that the Bush tax cuts are being extended for those making less than $400,000/$450,000, but income tax rates increase for those making more.
But the FICA tax is going up for everyone (up to the FICA limit).
I doubt the average (working) Obama voter even knew that his FICA tax was going to go up. Lots of grumbling going on about decreased net earnings on their pay checks. Obama didn’t save them (unless they qualify for a free ObamaPhone, extended unemployment, food stamps, section 8 housing, etc., but then they’re probably not working).
Actually the fraud works the other way. The illegal aliens who are hired with fake SSANs have their FICA withheld and that money does actually buy bonds (meaning the political hacks "borrow" it and issue "bonds" to the SS Trust Fund).
The rub is the illegal never receives Social Security Retirement or Disability benefits because if they apply they get caught and are informed that they don't qualify.
They are unwittingly helping to perpetuate the SS Ponzi Scheme.
While the cut in FICA was cutting granny off at the knees, the Bolshies promised that the rich would make it right. The double taxation is that the price of goods will go up. The DumBO voter will have his FICA returned to normal (as a SS recipient, I thank you), and, he will have to pay more for his 16oz. drink (for which, I don’t thank you).
The question now remains, when will everyone else pay their fair share? (Except me, I’m on a fixed income.)
I would forego SS, if the Bolshecrats, had not destroyed the private sector in the name of giving me more. The solution is in sharing the wealth, not redistributing it. Protecting a vibrant private sector grows the economy more than a moribund society without reward.
No Bills, Notes or Bonds are being printed anymore, they are all issued by wire book entry.
In fact starting in March, ALL Social Security recipients will have no more "checks" only direct deposits into their banks.
Come to think about it, how many trees would it take to make enough paper to print over $3.5 Trillion per year, 50 Million Social Security Checks per Month.
Oh and are we sure we might get a tax refund "check"? They've already announced that they will be "late" due to the reprogramming that's necessary due to the cliff deal.
Don't be surprised if you get a note in the mail from the Treasury asking for your banking info so they can "wire" the refund to you... or will it be an email?
obviously a FAKE employee’s employer is going to withhold FICA and keep it ~ and anything else he can ~ and never pay it, but the records will look really good. The employer takes a risk when he files income taxes and claims all those deductions, and EITC, and then gets really greedy and says “I need to cash those savings bonds’ ~
As usual the Englishs peaking native population will need to obey the law ~ everybody else gets an exception. The auditors look right on past those guys.
That was first class postage on each and every envelope and essentially third class mail treatment ~ but they got there on time.
Those were very profitable trips. That's all gone, still, there are sufficient schemes that circumvent digital systems that it's overdue for a new handbook on how to create a fake employee so you can lower your effective tax rate.
I'm sure Treasury has tapped into this thread already ~ they should be very afraid.
People earning more than the limit also received a tax increase on all their earnings below the limit. If the limit is $113,700 their tax went from $4775 to $7049.
But keeping the Bush tax rates unchanged was a “middle class tax cut”. Funny how that works.
Luckily (for them), most of the congress critters, the ruling class, and the higher paid bureaucrats and government workers, etc, will barely be touched by any these increases.
This was a temporary reduction in the traditional FICA tax rate!
These people are idiots but we all knew that!
The real tax increase comes from obastard care and the upper income bracket increase.
The “Rich” can never pay their fair share, because the Left never defines what they mean by “fair share”, and they never define what they mean by “rich”. It’s a constantly shifting goal post.
But really if you boil it down, “rich” means “anyone with more than me”, and “fair share” means “more”.
Sorry,Problem is The Boss Obama says it is Not over,just the Beginning
I have a solution: terminate Social Security. Social Security is one of our largest entitlement programs and it WILL bankrupt America if it’s not phased out.