Social security tax "deduction" is a farce for middle class earners

[Erod]

I haven't seen this posted, and I've heard nothing about it in the media. Perhaps it was just me.

Talking to some relatives, they mentioned that they've seen no difference in their paychecks with the social security tax decrease. I told them they were wrong, and dug in pretty good. Turns out they were right after doing some digging. This really chaps me.

In 2009 and 2010, middle class earners were receiving a credit called Making Work Pay tax credit.

Well, the MWP credit expired at the same time Obama decreased the social security tax decrease from 6.2% to 4.2 percent.

Therefore, there is virtually no difference in a middle income earners paycheck. Now, high earners are receiving a difference because they weren't eligible for the MWP credit to begin with. It phased out altogher at $75,000 ($150,000 for couples), so top earners never saw that money the past two years anyway, but they're getting a few more dollars in their checks now.

Yet, Obama bragged about how he was helping working people with this tax deduction as if they'd get a few more bucks to help make ends meet, when all he was doing was trading one dollar here for another there. If he wanted to help people, why didn't he leave the MWP credit in place, too?

When you look people in the eye and lie to them......wow.

 

[liblady]

I haven't seen this posted, and I've heard nothing about it in the media. Perhaps it was just me.

Talking to some relatives, they mentioned that they've seen no difference in their paychecks with the social security tax decrease. I told them they were wrong, and dug in pretty good. Turns out they were right after doing some digging. This really chaps me.

In 2009 and 2010, middle class earners were receiving a credit called Making Work Pay tax credit.

Well, the MWP credit expired at the same time Obama decreased the social security tax decrease from 6.2% to 4.2 percent.

Therefore, there is virtually no difference in a middle income earners paycheck. Now, high earners are receiving a difference because they weren't eligible for the MWP credit to begin with. It phased out altogher at $75,000 ($150,000 for couples), so top earners never saw that money the past two years anyway, but they're getting a few more dollars in their checks now.

Yet, Obama bragged about how he was helping working people with this tax deduction as if they'd get a few more bucks to help make ends meet, when all he was doing was trading one dollar here for another there. If he wanted to help people, why didn't he leave the MWP credit in place, too?

When you look people in the eye and lie to them......wow.

the MWP was max 400 dollars for singles..........6.2% of wages. there is no cap on the ss reduction. if a person had earned 60k, he would have realized 400 additional for the MWP, while he realizes 1200 for the SS tax reduction. (4.2% * 60,000).

a person earning 30k would lose 400 for the MWP credit, but gain 600 from the reduction in SS tax.

15k would lose the 400 credit, while they would see a reduction of ss tax of 300, so a net loss of 100. 20k is the break even figure.

so, there clearly IS a difference for middle class earners. so, WOW! obama did not lie.

 

[Erod]

the MWP was max 400 dollars for singles..........6.2% of wages. there is no cap on the ss reduction. if a person had earned 60k, he would have realized 400 additional for the MWP, while he realizes 1200 for the SS tax reduction. (4.2% * 60,000).

a person earning 30k would lose 400 for the MWP credit, but gain 600 from the reduction in SS tax.

15k would lose the 400 credit, while they would see a reduction of ss tax of 300, so a net loss of 100. 20k is the break even figure.

so, there clearly IS a difference for middle class earners. so, WOW! obama did not lie.

Obama bragged how he was going to help give middle class Americans with the social security tax break. He failed to mentioned that it was to offset the credit he was taking away.

Why didn't he mentioned the MWP aspect of this? You don't find that disingenuous at all?

 

[cpwill]

:shrug: this is a man who considers not taking money from you the equivalent of giving it to you. It's exactly what I would expect from him.