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Payroll Tax Decrease reduces Social Security Funds
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Government & Elections
Payroll Tax Decrease reduces Social Security Funds
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Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in t
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Cat:d51398b3-89f9-463d-bf1b-4b885f02c9eeForum:af978875-5bc6-4b07-a6fb-b18062132f95Discussion:14ace3ac-508d-40e8-a3d6-4315d3df6802
Forums » Politics & Society » Government & Elections » Payroll Tax Decrease reduces Social Security Funds
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Payroll Tax Decrease reduces Social Security Funds
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Payroll Tax Decrease reduces Social Security Funds
posted at December 23, 2011 6:53 AM EST
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Posts: 7
First: December 19, 2011 Last: December 23, 2011 |
Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in the funds going to social security and no news station ever mentions that this will decrease the social security funds. Since social security is supposed to run out of money in the future why isn't this discussed ? |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 4, 2012 1:56 PM EST
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Posts: 22
First: October 5, 2011 Last: January 15, 2012 |
In Response to Payroll Tax Decrease reduces Social Security Funds: Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in the funds going to social security and no news station ever mentions that this will decrease the social security funds. Since social security is supposed to run out of money in the future why isn't this discussed ? Posted by mander1998 Also by keeping the Payroll Taxes reduced, your FICA taxes withheld from your check (which your employer also has to match your FICA tax withheld from your check which many people don't know unless you have done payroll and payroll taxes before) is going to reduce YOUR SOCIAL SECURITY AMOUNT YOU GET WHEN YOU RETIRE. Percentage of FICA (Not Fed W/H or State W/H) is based on your Gross Income (as is fed and state but just talking about FICA tax here), and reducing the FICA TAX withheld from your payrollcheck is going to affect the amount of Social Security you will receive when you retire! That is how SS works, the amount you have contributed from your check when working. But your employer also matches those FICA taxes also. (Most people do not know that, did payroll for years). SO PEOPLE ALL TOOK THIS WRONG, IN THE LONG RUN, IT IS GOING TO AFFECT YOU AND WHAT YOU RECEIVE FROM SOCIAL SECURITY. THOSE FICA TAXES THAT ARE TAKEN OUT OF YOUR PAYROLL CHECK ARE BASED ON THE TOTAL GROSS INCOME YOU MAKE, BUT THE FICA TAX OR PAYROLL TAX IS GOING TO REDUCE YOUR SOCIAL SECURITY AMOUNT YOU RECEIVE IN THE LONG RUN. NOBODY IS THINKING ABOUT THAT, BUT PEOPLE SHOULD!!!!! 
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 4, 2012 2:07 PM EST
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Posts: 22
First: October 5, 2011 Last: January 15, 2012 |
Yes, payroll taxes (your FICA tax taken out of your payroll check) being decreased is NOT BEING ADDRESSED IN THIE FORUM AS TO WHAT IT REALLY MEANS! |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 4, 2012 5:20 PM EST
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Posts: 1924
First: November 27, 2011 Last: May 31, 2013 |
Hey, pattyasm - Although you are right in how the payroll tax is figured and how it is assigned between the employer and the employee - You are WRONG about how your social security benefit is actually figured - it is not figured on the amount of payroll tax that has been submitted under your account - Your social security benefit is figured by your average earnings from year ot year after you have become vested. |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 14, 2012 4:41 AM EST
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Posts: 22
First: October 5, 2011 Last: January 15, 2012 |
In Response to Payroll Tax Decrease reduces Social Security Funds: Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in the funds going to social security and no news station ever mentions that this will decrease the social security funds. Since social security is supposed to run out of money in the future why isn't this discussed ? Posted by mander1998 The payroll tax decrease was such a small percentage, it wasn't meant to increase the fuding for social security. I have read this same post so many times, people are not getting it at all! If people think that the small percentage that was going to be increased to payroll taxes to put it back like it used to be, was going to help fund social security funds are hot well informed and do not understand the Social Security system at all! Congress and the White House were not intenting on the small increase in payroll taxes to help fund social security funds, the percentage was so small, it was not intented for that at all. Seems like the younger generation is so misiformed as to what FICA taxes are for and that anything that has to do with payroll taxes (it was reduced in the previous administration and was to be increased to ut the FICA tax back to what it used to be) means it is to fund Social Security. No, the small percentage payroll tax that was voted down was only to put payroll/FICA taxes back to what they used to be. And again, the percentage of tax that was addressed was such a small percentage, it was not meant to possibly meant to increase the funding for Social Security. If you read the bill that was before Congress you would know that it was not intented to possibly help fund Social Security, the percentage increase was too small for that and was intented to put the payroll tax back to the percentage it used to be before it was decreased in the previous administration. 
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 14, 2012 9:44 AM EST
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Posts: 12549
First: February 29, 2008 Last: June 16, 2013 |
In Response to Payroll Tax Decrease reduces Social Security Funds: Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? . Since social security is supposed to run out of money in the future why isn't this discussed ? Posted by mander1998 UNLESS I missed the answer to the above via media...then we can only guess. Let's establish that the amount of funds going to SS has not changed. The general fund is transferring the 2% into the system. The GOP has this in their heads that lower taxes means more jobs even though it never happened in the near-10 yrs since the 2003 tax reductions. The idea it creates jobs is just like a trojan horse to bring down the top-rate. In order to get anything passed such as extending unemployment benefits for those who ran out the democrats had to go along with tax extension reductions. As to why the republicans want to reduce the FICA taxes I THINK is to show us that Soc Security run by the GOVT is not successful and we need to send this funding to Wall Street and private investments. They are out to KILL Social Security and don't kid yourself otherwise. |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 14, 2012 9:56 AM EST
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Posts: 1924
First: November 27, 2011 Last: May 31, 2013 |
In Response to Payroll Tax Decrease reduces Social Security Funds: Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in the funds going to social security and no news station ever mentions that this will decrease the social security funds. Since social security is supposed to run out of money in the future why isn't this discussed ? Posted by mander1998 It is being discussed - it just isn't always hitting the news. Here on the Social Security Website are various Proposals for Change. SSA: Office of Chief Actuary - Proposals Addressing Trust Fund Solvency Look at all of them just during 2011 - submitted by both Republican and Democrats. None of them really want to touch it during an election year because of the voter consequences. So what's it gonna take to fix it and bring in more money to firm up the trust fund? There are a lot of ideas but somebody or all of us, in some way, will have to pay more and more and more and more . . . . . and/or we will have to change the program in retirement age even more than it is now (66) and redo the the computation basis for the COLA in some way. The problem as to how to change it is not near as hard as what it might do to our fragil economy right now. When government takes more money - there is less to be spent in the overall economy - that is the basis for the payroll tax reductions to employees right now - we give them more in their paycheck to spend in the overall economy. So any fix other than age modification will effect people's paycheck in a fragil economy. |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 14, 2012 7:53 PM EST
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Posts: 542
First: August 9, 2011 Last: June 12, 2013 |
Simple solution if the Republicans go along with it, which I doubt. Tax the rich 1% just like our President Obama wants to do. The only reason Social Security is on the block is Democrats trying to compromise with Republicans. If it wasn't for that little problem Social Security is safe. n Response to Payroll Tax Decrease reduces Social Security Funds: Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in the funds going to social security and no news station ever mentions that this will decrease the social security funds. Since social security is supposed to run out of money in the future why isn't this discussed ? Posted by mander1998 |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 15, 2012 6:17 PM EST
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Posts: 1924
First: November 27, 2011 Last: May 31, 2013 |
In Response to Re: Payroll Tax Decrease reduces Social Security Funds: In Response to Payroll Tax Decrease reduces Social Security Funds : UNLESS I missed the answer to the above via media...then we can only guess. Let's establish that the amount of funds going to SS has not changed. The general fund is transferring the 2% into the system. The GOP has this in their heads that lower taxes means more jobs even though it never happened in the near-10 yrs since the 2003 tax reductions. The idea it creates jobs is just like a trojan horse to bring down the top-rate. In order to get anything passed such as extending unemployment benefits for those who ran out the democrats had to go along with tax extension reductions. As to why the republicans want to reduce the FICA taxes I THINK is to show us that Soc Security run by the GOVT is not successful and we need to send this funding to Wall Street and private investments. They are out to KILL Social Security and don't kid yourself otherwise. Posted by JANMB This payroll tax cut for employees was from the President, not the Republicans. It actually is just a different way of attaining the same goal that he had in his "Making Work Pay" program - guess that program was just too difficult to understand, plus it covered some of the higher income folks. The employee side of the payroll tax cut can only affect those that are making less than $110,100 because that is the current cap on wage connected payroll tax contributions. The (employee) side of the reduction is not ment for job creation rather it is (according to the Dems) to put more spending money in the hands of those employees - Spending is what makes our world go round and round. |
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Re: Payroll Tax Decrease reduces Social Security Funds
posted at January 15, 2012 10:39 PM EST
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Posts: 22
First: October 5, 2011 Last: January 15, 2012 |
In Response to Payroll Tax Decrease reduces Social Security Funds: Now that the payroll tax decrease has been extended does anybody know how the congress and white house plan on increasing the funding for social security ? The payroll tax decrease is a decrease in the funds going to social security and no news station ever mentions that this will decrease the social security funds. Since social security is supposed to run out of money in the future why isn't this discussed ? Posted by mander1998 The payroll tax decrease was done in a previous administration. It used to be 7.5%-and your employer matched those FICA taxes, or payroll taxes. The amount of your gross pay depends upon how much FICA tax was withheld. We all know, as told by Joe Scorborough from the Morning Joe show how 11 trillion dollars was taken, stolen from the Social Security fund. The Social Security fund is solvent through 2037 or something like that. The small increase of payroll taxes that you think would help fund Social Security is not even making common sense. It is such a small amount, and they were just trying to raise it back up to what it was before a previous admiistration decreased it. So for my brother, who is going to retire next year, the payroll taxes have been reduced for quite a few years now and will reduce the amount of Social Security he will get, which he is hopping mad about that it was not raised back up to what it used to be. So he gets less money now. So how can that be a good thing?? 
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Forums » Politics & Society » Government & Elections » Payroll Tax Decrease reduces Social Security Funds
