To: Phantom Lord
Someone on the radio the other day (a radio host, can't recall which one) pointed out that Social Security is not based on your after-tax income, but on your before-tax income. That means it's taken out based on your gross, before you pay your income taxes -- no deduction for fed or state. So it's based on money you never see, for a start. In addition, the government recently raised (with little public comment) the amount of pay that you have to pay SS on. Then, when you begin collecting SS, you pay tax on it again. Thanks to Clinton, the percentage of SS that could be taxed was increased massively. Don't know how many taxes that adds up to, but it's the situation.
11 posted on
01/30/2003 2:44:44 PM PST by
Inkie
To: Inkie
In rereading that post I just responded to, I think the situation is that you pay SS tax on your gross, but it is not a deductible expense, so when your fed and state income taxes are figured out, you are paying taxes on the taxes (the SS taxes).
14 posted on
01/30/2003 2:46:31 PM PST by
Inkie
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