Americans do not pay into Social Security beyond yearly earnings of $127,500

Posted by DanielS on Friday, 28 April 2017 01:33.

Gary tax Asia to pay for black Welfare Cohn and Steve put the goyim to work Mnuchin

The Hill, 27 April 2017:

“Trump officials stage full-court press for tax plan”

The Trump administration on Thursday began a full-court press aimed at generating momentum for President Trump’s tax reform plan.

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The Trump administration also made efforts to rally support from influential conservatives. Mnuchin and White House economic adviser Gary Cohn on Thursday met with groups such as Americans for Prosperity (AFP), a group backed by the Republican mega-donors Charles and David Koch.

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The White House’s plan came in the form of one-page overview, and set down some significant markers, including lowering the top individual rate from 39.6 percent to 35 percent and the corporate tax rate from 35 percent to 15 percent.

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Businesses have been excited about the prospects for tax reform since Trump was elected, and groups overall were pleased to see a plan that proposed lower rates for businesses and a move to a “territorial” system that doesn’t tax U.S. companies foreign earnings.

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We can be sure these tax proposals are going to run contrary to Jewish interests and their complicit, predatory right wing interests (of course not).

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In fact, Gary Cohn’s tax program is going to tax Asia in order to pay for American blacks ..and even to pay for all America’s SSD and SSI, which America’s wealthy should be paying their fair share for (either that, or have Americans come to terms with who they don’t want to live with and be bothered by).

Kumiko, “A view of Brexit from Asia: Britain as a Pacific trading power in the 21st century”, 6 Mar 2017:

I mean let’s be real, the Americans just somehow non-ironically elected a guy who came out with a speech 120 hours ago where he advocated what? This hilarious list:

a. 54 billion more drunkenly spent on defence spending targeted at nothing,
b. 1 trillion more for infrastructure spending for inner city no-go zones which will have pitiable return on investment,
c. More o’ dem social programmes for the poor baby Trayvons in Detroit who lost their jobs – despite them never having had a job – to the allegedly ‘bad bad’ people in Manila or ‘bad bad’ people in Ho Chi Minh City who are apparently ‘ripping’ you, because why? Because of course. Apparently according to Hunter Wallace, African-Americans are now more valuable to the Alt-Right than trade with Asian states is, so what the hell.
d. Free cash-money for Israel. Because Trump just loves Israel. Because his family is married into it. All of them will continue to studiously ignore that tendency.

So there I was, watching that mortifying clown-car of super-horrible policies unpacking itself into the international arena and I was asking – while I was drinking white rum directly from the bottle – a single question. Only one question.

“But Bernie—I mean, Trump, how are you planning to actually pay for any of this stuff, fam?”

The answer arrived shortly thereafter! The ‘answer’ is apparently:

a. Doubling-down on protectionist tariffs and incoherent ‘buy American’ sloganeering to socially reinforce it, a move which depends on the absurd and not-ever-happening idea that Asian economies will passively allow the United States to subject them to a tariff regime designed by Gary Cohn since certain commodities stocks have spiked up since 09 November 2016, and maybe if the markets reorder themselves around that, those positions can continue to grow. People can make instruments which tap into that expansion, and then people and the state itself can borrow against those instruments using some very fancy mathematical formulas to predict their performance. Detroit and other Rust Belt disaster zones will somehow magically be rebuilt, and the African-Americans will somehow crank out billions of widgets while somehow not being at all socially-dysfunctional, so that all of the big spending will totally somehow pay for itself. The formulas may or may not have documentation associated with them. The formulas may or may not even be based in any kind of rational thought. Your children can then repay the money to Goldman Sachs about 35 years from now. And all of that is to be done so that the allegedly heroic America can finally defeat the allegedly undead East Asia.

Wow, right? Really very much wow. I mean the whole Trump-style plan has literally never failed before except for like every single time ever.

I guess you could say that I disagree with the Israel-backed Trumpist manchild plan, because my geopolitical stances are all anti-Semitic in one way or another. You could say that I disagree with the Israel-backed Trumpist manchild plan because I am of course an Asian woman, which is another factor that makes me very scary and perhaps ‘evil’.

Financial Samurai, “Maximum Taxable Income Amount For Social Security (FICA)”

Uncle Sam The Tax ManFICA stands for Federal Insurance Contributions Act and consists of a Social Security tax and a Medicare tax. This tax is very important for everyone to understand because so often we only think about federal tax rates and state income tax rates. The FICA tax is a big percentage of your total tax bill, especially for those making under six figures a year.

When I was making big bucks in finance, the tax bill was equally big bucks. The only saving grace was seeing my after tax paycheck increase after the maximum taxable income threshold for Social Security was breached each year. The tax amounts were jolting based on how inefficient the government was and still is with regards to spending our money.

For 2017, the maximum amount of taxable earnings for Social Security and Medicare is $127,500. In other words, an employee must pay 6.2% of any income up to $127,500 for 2017 = $7,905. But any dollar you make above $127,500 is free of the Social Security tax. Hence, a good goal for everyone is to make as much as they can over $127,500 as possible, right?

Not so fast. Given we have a progressive tax system in America with Alternative Minimum Tax (AMT) and deduction phaseouts, I’ve calculated that the optimal Adjusted Gross Income is roughly $250,000, +/- $50,000. At $250,000, $131,500 of the earnings is free from the 6.2% Social Security tax. Meanwhile, you still get most of your mortgage interest deduction, and only have to pay a slight amount of AMT, depending on the person. A $250,000 income is also high enough to live relatively comfortably in any part of the world.

Some might argue that the Social Security tax is regressive because it caps out at $127,500 in 2016. Why shouldn’t rich people pay more? Here’s the thing people might not understand. Social Security benefits cap out based on the maximum amount of Social Security tax contribution as well. It’s not like someone who is making $500,000, and not having to pay the 6.2% Social Security tax on $381,500 of his earnings is getting extra benefits based off his $500,000 income. He’s just getting the maximum Social Security payout amount when it comes time for him to collect based on the maximum taxable income amount he contributes.

The $500,000 income earner is already paying the highest marginal federal tax rate of 39.6% plus state taxes, if applicable.



Comments:


1

Posted by Trump plan: below 75k more tax, above, less on Wed, 29 Nov 2017 11:11 | #

Time, 28 Nov 2017:

“I’m a Multi-Millionaire So Trump’s Tax Plan Is Great for Me. It’s a Disaster for Everyone Else”

On Sunday, the nonpartisan Congressional Budget Office released its report on the effects of the Senate GOP tax plan, and the results aren’t pretty. According to the CBO, if this bill passes there will be a huge transfer of wealth in our country from the middle class to the rich. Nearly every American making under $75,000 a year will have less money in the long run, while millionaires like me will have more money from all our tax cuts.

The plan would also add an astounding $1.4 trillion to the national debt. That’s 1.4 trillion reasons Republicans are going to use in the future to justify cutting Medicare, Medicaid and Social Security.

Senate Republicans claim their bill is intended to help the middle class, and that tax cuts for millionaires and wealthy corporations are necessary to boost economic growth and raise wages. People who invest in job-creating businesses know that the most important factor for economic growth is customers who have the means and desire to buy their products.

The idea that this tax plan is going to help anyone beside the ultra-rich is ludicrous. Even a brief examination of their bill shows how blatantly untrue their claims are.

Yes, some middle-class Americans are going to get a tax cut, but it will be temporary and will leave millions worse off in the long run. If you make less than $75,000 a year, your taxes are going up so mine can go down.

What about those huge tax cuts for millionaires and wealthy corporations? Those are permanent. That disparity tells you everything you need to know about the bill.

To make matters worse, the Senate bill’s elimination of the Obamacare individual mandate would absolutely wreck the healthcare market. Without the mandate, health care premiums would rise across the board by about 10%, increasing costs for consumers and forcing those who can’t afford the increase to go without.

The CBO estimates that without the mandate an extra 4 million Americans would be without insurance by 2019, a number which rises all the way to 13 million by 2027. Some of those people will end up going bankrupt, and that won’t help them, the businesses where they shop or any other part of the economy besides the debt collection industry.

After years of talk about the danger of deficits and the importance of helping small businesses, this bill puts Senate Republicans’ priorities in the spotlight, and the American people (rightly) don’t like what they’re seeing. Any tax bill will naturally have winners and losers as rates are changed and loopholes are closed, but it’s striking how clearly the lines in this bill have been drawn. If you’re rich, you’re a winner. If you’re not, you’re a loser. That’s not tax reform, it’s a handout to the wealthy.

The zealous support for this bill by many Senators baffles me. Some of the bill’s loudest advocates, like Mitch McConnell of Kentucky or Tim Scott of South Carolina, represent states full of people that stand to lose if this passes. They are pushing a bill that will hurt the vast majority of their constituents, all to please a few wealthy donors. That decision isn’t just morally reprehensible, it’s political suicide.

The effects of this tax bill are clear — I’ll get a tax cut, and the middle class gets screwed. That’s apparently an acceptable tradeoff for many members of the Senate, but it’s not ok with me, and it shouldn’t be ok with the American people. This bill is an outrage, and it must be stopped.



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