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Payroll tax update

Posted by rob333 (My Page) on
Tue, Feb 14, 12 at 14:32

"House Republicans on Monday announced they could consider extending the 2 percent payroll tax cut for the rest of the year without offsetting the costs with spending cuts -- a significant policy shift for the Republicans and a political victory for Democrats."

Woohooo!!!!! And surely you would agree that this is good since even the President said, "Washington shouldn't hike taxes on working Americans right now," Mr. Obama said from the White House. "That's exactly what's going to happen in a couple weeks if Congress doesn't do something about it"

This has to get done this week as next week, they're off all week due to the President's Day holiday.

Here is a link that might be useful: CBS reporting it


Follow-Up Postings:

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RE: Payroll tax update

rob, this is not hiking taxes. It's stealing from the Social Security fund and calling it a tax cut. How will you feel if Social Security is not there when you need it?


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RE: Payroll tax update

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Feb 14, 12 at 15:38

MrsK since the republican position is to do away with SS, I imagine you agree with them. I know I have heard them say that young people should invest their dollars for retirement in private entities so what difference does it make ? I mean if people lose their retirement funds, like the 401K losses, then that is their own fault because they made bad choices.

Kind of glad I am entering the last part of my life, not sure I like seeing what the future holds if this mindset succeeds.

Peace


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WOWRE: Payroll tax update

wow ohiomom, do you have filtered hearing? They have not said do away with SS. They have said give young people other options. Choice I think it's called.


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.....and also

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Feb 14, 12 at 15:55

...okay you are right, but the young people who "choose" other options ? It is the same as the tax cut, in other words less money going into social security.

Six of one/half dozen of the other ?

I don't see a big difference, either way means less funding for social security which pretty much means it's demise.

Shrug


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RE: Payroll tax update

MrsK,

Whatever they call it, in reality, it eats into my money which pays for my current needs. For car repairs, for my son's school clothes, for our medications and doctor visits, etc. There won't be social security for me when it's time anyhow! It's paying the baby boomers' needs, not funding mine. I'll either be poor for them now or be poor for myself later on. I am already braced to have to live on my 403B and my own mutual fund which I just started. I'll help with someone else when I get better situated. I'm like every other working class slob, now is NOT a good time. SS will bankrupt, and it'll be before I get there, after all my hard earned money having gone into it. How would that make you feel if it was you? You pay and pay, only to get nothing out of it even if you really need it? The end is coming and I for one, don't really think it's fair what will happen to me or to my son. Yea, yea, I know, not in my lifetime. Believe it when I see it. Don't trust those guys at all!

To the point of, I refuse to pay son's secondary education (he can get scholarships, he's very very bright, or get his own student loans), instead, having begun his retirement. He will have his retirement nest egg already up and going in his mutual fund when his undergraduate is done. Just in case SS has to bankrupt on his turn. Before he's even started at his job, whatever that is. Job retirement will just be gravy on top of it. He knows and understands why I am not funding his college. Besides, people do not appreciate their education until they have to pay for it. I know too many kids that quit after their parents shell out the big bucks for it, with no compunction to pay them back or finish their education.


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RE: Payroll tax update

I can't believe the misconception of tax cut is still out there.

It's an advance pay that is deducted from your future payment.

And nobody is replacing the SS benefits in our lifetime. I've been hearing that since I was 16 and I'm now 61. If you've paid your share, you will receive it. Unless of course Washington needs to borrow your money to wage another war or two, or repay China, or rebuild a country we bomb.


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RE: Payroll tax update

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Feb 14, 12 at 16:09

Rob I know you are younger than I :) but this is exactly what my own children have been saying for years "it won't be there for them" because that is EXACTLY the message from certain people we will just look at and whistle have been preaching to them for years.

So they figure why the heck should they pay into it.

Mission accomplished !!


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RE: Payroll tax update

After the fiasco of Bush running around with his hand-picked audiences at the town hall meetings trying to 'privatize' social security, the new term is "individualize" social security.

As anyone who listened to the debates can easily tell you.

But my favorite is how they will 'save' medicare by handing out a $10,000 voucher to all the old people so they can go find their own private insurance.


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Numbers...

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Feb 14, 12 at 16:17

....don't know if you agree with the following, but I can tell you from my circle of friends/acquaintances/family this pretty much is the feedback I get.

Six in 10 Americans who have not yet retired believe they will get no Social Security benefits when they retire, more pessimistic than at any time since Gallup began asking this question in 1989. Similarly, retired Americans are now significantly more likely than they were five years ago to believe their existing Social Security benefits will eventually be cut.

Here is a link that might be useful: Gallup


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RE: Payroll tax update

ohiomom, those that opt for a private plan won't be paying into Social Security, but then, they also won't be drawing out of Social Security.

And rob, I have paid and paid, for 40 years. And I want to be able to draw my Social Security. Have you wondered that if that money you are not now paying in, will also not be shown in quarters worked when it is time to receive your benefits?


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RE: Payroll tax update

Oh I'll pay into, gladly Ohio. But expect anything out of it? Nope. I realize I am helping others, and that's great, but I'm not fooled into thinking it'll last forever.


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Retirement

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Feb 14, 12 at 16:21

Rob you should read my above link, you are not alone :)

MrsK .. you are also represented in the linked chart.


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One more thing...

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Feb 14, 12 at 17:35

....and then I will be quiet :)

MrsK you do realize in order for we boomers to collect our social security it is not "our" money we are collecting ? In other words the younger people who are currently paying into the system are doing that. We paid for our parents, tis the way the system works. So if they opt out paying into it we can pretty well be assured the boomers will run out of funds.

If I am wrong in my understanding, please someone correct me.

LOL I am sure you will :)


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RE: Payroll tax update

You are correct, ohiomom. You could also add that what we all pay into the system is just a pittance of the amount we will actually draw out of the system, assuming we live over 70 years old.

Here's all these people worrying that they won't get back what they put it, when in fact they will probably get out much, much more than they ever paid in. That's a good deal, in my opinion. Why anyone would want to do away with it by "privatizing" or "individualizing" it--so that you basically get back only what you put in--which means by age 70 you are going to be flat broke--I don't know. Sounds like a rotten deal to me.

Kate


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RE: Payroll tax update

Mrsk and others like her will take out of Social Security MUCH MORE than they ever paid in.

Ohiomom, you are very right.

As each year goes by, it takes more and more of us who work to support each mrsk, so that she can get her benefits!


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RE: Payroll tax update

And just think. If the retirement age was raised to 70, and the restrictions on contributions removed for those making higher incomes, then SS would be solvent for the next generation.


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RE: Payroll tax update

Reinstated for another year. I hope they figure out between then and now how best to get this economy going well enough for everyone.

Ironically, I changed my withholding since I am still getting back money at the end of the year (thanks to paying my student loan!) and I finally have $$$ to give to charities, as I wanted.

Here is a link that might be useful: It's been extended-Annoucement


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RE: Payroll tax update

  • Posted by vgkg 7-Va Tidewater (My Page) on
    Thu, Feb 16, 12 at 16:33

Enjoy this continued tax break whist you can.
Any predictions on where the politics on taxes will be by next Dec? This tax break and the old Bush era tax cuts will expire on 12/31/12. Obama knows that the repubs won't pass his minimum 30% tax on millionaires so he'll then push for allowing those making <$250K to keep the Bush cuts after Jan 1st while letting them expire for all those above. Assuming that Obama is re-elected and depending upon who controls both houses it'll be interesting to see how this game of tax chicken will unfold -

If the repubs still control the house will they compromise with Obama after the election? or just stand in cement as per usual and let the Bush cuts expire for All, and then of course blast Obama for letting it happen. The repubs seem to realize this coming trap, their only hope is to keep "Obama's War on Religion" smokescreen going for another 9+ months, doubtful....so stay tuned to more smoke blowing out their butts as the summer drags on, perhaps there's a 3rd birth certificate out there somewhere?


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RE: Payroll tax update

perhaps there's a 3rd birth certificate out there somewhere?

Obama was actually born in Canada. He is one of our high level operatives currently taking orders from Lorne Michaels (Lorne Greene's successor) and his real birth certificate is kept in a vault in the CBC building in ot-TA-wa.

You people didn't actually think a US Presdent could come from Hawaii, did you? Pffttt


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RE: Payroll tax update

Mom,

Aren't you going to accept the widow survivor benefits that you are entitled to?


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RE: Payroll tax update

  • Posted by sweeby Gulf Coast TX (My Page) on
    Fri, Feb 17, 12 at 21:11

"And just think. If the retirement age was raised to 70, and the restrictions on contributions removed for those making higher incomes, then SS would be solvent for the next generation."

WHAT - Tax the Rich? I mean the OLD? I mean the Not Old?...
OK, I'm not exactly sure what to be outraged about, but that's positively OUTRAGEOUS!

Right?


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RE: Payroll tax update

Yes, this is definitely going to happen within few weeks but I expect Congress to take up this issue again when we reconvene in January.

Here is a link that might be useful: Canadian Income Tax Return


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RE: Payroll tax update

There is nothing wrong with social security that some adjustments won't fix.

The problem is it's a philosophical issue. The republicans want smaller government and they see social security as the big daddy of a socialistic society. So they will bellyache and hold their breath until they get their way. There is absolutely no reason why the retirement age can't be raised; there is no reason why the caps on income can't be raised or even removed. There are plenty of ways to keep social security solvent.

No one can predict what the future will hold and you may be flying high today but who knows where you will be at age 67 due to illness, due to unemployment, due to the vagaries of life. At least the safety net will be there for those who contributed to the program.

Believe me, if social security is eliminated, taking care of the sick and poor who will really have no one to turn to will be way more expensive than keeping the program and tweaking it so it works.


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RE: Payroll tax update

Jerzee,

Someone popped this post back up.

No I don't see social secuirty as "big daddy" in anyway. I see taxes being weigh unevenly. The government has become far too intrusive. It's a false sense of security and messes up some things that would otherwise fix themselves if the government would just butt out. Thinkn of the new Medicare leave/readmit mandate. I'm not interested in ending social security.


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RE: Payroll tax update

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Sun, Mar 17, 13 at 14:48

Going back a year ...

Posted by rob333 (My Page) on Tue, Feb 14, 12 at 14:32

"House Republicans on Monday announced they could consider extending the 2 percent payroll tax cut for the rest of the year without offsetting the costs with spending cuts - a significant policy shift for the Republicans and a political victory for Democrats." Woohooo!!!!! And surely you would agree that this is good since even the President said, "Washington shouldn't hike taxes on working Americans right now," Mr. Obama said from the White House. "That's exactly what's going to happen in a couple weeks if Congress doesn't do something about it"

Posted by mrskjun 9 (My Page) on Tue, Feb 14, 12 at 15:32

rob, this is not hiking taxes. It's stealing from the Social Security fund and calling it a tax cut. How will you feel if Social Security is not there when you need it?


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RE: Payroll tax update

Obama must be listening to Bill Clinton. Don't hike taxes.


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