[Phantom Lord]

How exactly are Social Security taxes taxed 3 times?

Last i checked the SS taxes are taken from my paycheck and then my pay is taxed. So those SS taxes havent been taxed yet.

Then, if I live long enough to collect SS, and its still around at that time I pay tax on the receipt of the SS money. Thats tax #1.

Where are tax 2 and 3?

[Inkie]

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.

[I_be_tc]

I don't get it either. But I am sure babble streisand has it all figured out!

Also, anyone else notice how the dimis keep calling FICA a payroll TAX. If this is a TAX, then should not the government employees (including congress) all be paying this same TAX? Or is it a discriminatory TAX that only the private sector must pay? I think it is time for a class action lawsuit that requires all of them to fork into this fund they refer to as a payroll TAX.

TC

[EBUCK]

SS is taken but still counted in the overall income scheme (since you still "own" it afterall is said and done) so SS tax, tax on income (including SS already withdrawn) and then if you make more than 36K (I think) while collecting SS you get taxed on income again...so it's really like 1.5X.