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 ...
Every working American just got a 32% increase in their Social Security taxes.
Left out part employer pays. Will translate to layoffs to compensate.
So, there Democrat trough pigs ~ squeal!!!
Well, the liberal view is that the Social Security tax increase isn’t really an increase. In their view, the temporary reduction in those taxes expired, and now the tax rate simply went back to where it was. In liberal speak, that is not a tax increase.
Actually I am pretty sure the employer paid SS did not change when this "tax holiday" was created.
They changed only the employee paid part.
The employee pays the whole tab...unless he has a lockbox.
Corporations don’t pay taxes. People do.
You got that right. Corporations just collect the tax and pass it on to the government. The end consumer pays all taxes, either as direct tax or higher prices or inflation.
Payroll tax deflection from:
the price pressures upward due to more cliff government paychecks in circulation: 1. Essentials prices rise and 2. the sales taxes (city, state, etc.,)on everything increase, 3. As less buying due to high prices increase unemployment.
Listen you capitalist pig dog, you need to understand in that puny commerce related brain that the rich need to pay for ALL the other years they WERE NOT paying their fair share and by this it means they have to pay for all rich people from last AT LEAST 7,000 years.
They still have so much to PAY for because we won;t be happy until they have no money and even then they should pay with their lives....
Hail Mao, Stalin and Pol Pot.....
(Frothing Leftie Mode Off)
Some small businesses create fake employees. That way the owners can pull some of their income out of the business activity at a far lower tax rate. I’m thinking of writing an illustrated handbook showing folks how that is done ~ should be a best seller.
And rightly so, it was only the employee "contribution" that had the tax-holiday that was allowed to sunset. Employers were still paying 6.2% of employee wages up to the cutoff (a bit over $101K, I think). There it no increase in employer costs to trigger layoffs in that part of the deal -- the only place there would be is in raising rates on folks making $450K per year for small businesses that still file as individuals and have that large an income after deductions, and in the curtailment of deductions if it affects business-expense deductions. (Which is not to say there may well not be lots of layoffs due to Obama policies, just that they will be due to the costs of Obamacare and over-regulation, not the "fiscal cliff" deal.)
Obviously you’ve covered the additional costs associated with each employee: workmen’s comp, unemployment insurance contribution, mandatory healthcare, etc..
But, wouldn’t the company Christmas party be a lonely event? Talk about the ultimate example of pleasuring yourself!
They were in the process of renting a new 10X larger warehouse in Pittsburgh to store the bonds until they could process the change of addresses.
The small business guys creating fake employees had gotten greedy all at once and decided to BUY A BOND A MONTH! This may have occurred as a consequence of heightened awareness of illegal aliens holding regular jobs. The bond trick would, presumably, make these employees seem all that much more American.
Totally weird. They were all mailed DO NOT FORWARD, so when they put in a forwarding order for the fake employee at the relative or friend's address that they'd used, it went back to Treasury Department.
Tens of thousands of tax evaders were soon hoist!
No, I didn't invent the scam, but i certainly did some in depth research into how this one was done ~ just bet it's worse now! Time for ME to cash in with a handbook that tells you how to do it and EVADE detection!
Employers didn’t get the 2% break. They’re just evil capitalists anyway.
Now, obamakkkare requires you to figure out your medical costs as your first dollar of expenditure.
We should see a massive increase in bankruptcies and business failures in the first 6 months of next year if this legislative package stays in place.
Obama will have literally destroyed the black middle class ~ among others ~ and ignited a wave of suicides for financial reasons that should shake the foundations of the republic.
And that puke wonders why we need more guns.
What you are saying makes zero sense. It is far cheaper to pay dividends than to make up a fake employee and pay the burden. Then you say they were buying bonds? What kind of bonds? How would any of that shelter income?
Something is clearly missing from your description.
That's money your employer would be paying you, but gives it to the government instead. It's still your money. The full 100% of social security taxes is coming from you. It is all part of your total income - your employer's cost of keeping you employed.
When your employer on paper pays you $10/hr, they are really paying $10.62/hr (not including other payroll taxes, unemployment insurance, etc.) Their cost to employ you is $10.62/hr. But instead of giving you all that money, they give some of it to the government instead on your behalf. So yes, you are really paying the entire 12.4% instead of only 6.2%. For the $10.62/hr that your employer allocates for your labor, $1.24 goes to the government which will end up in the general fund. Your employer takes no hit here.