Posted 7 months ago on Oct. 24, 2017, 4:18 p.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
Dot 1: Payroll tax taken from the lowest paid workers in America. They pay little or no income tax(1) because the minimum deduction and dependent deductions are often greater than their incomes. The SS payroll tax is deducted at the full rate from their paychecks.
Dot 2: The Social Security Trust Fund is sufficient to keep Social Security and Medicare afloat for 20 years, until 2037. With a cut in benefits of 13% OR an increase in the payroll tax of 2% the fund is good for 75 years. Not mentioned at ssa.gov is the possibility of increasing the income ceiling ($128,700) for collection of the tax. (2)
Dot 3: Congress borrows and spends the Trust Fund on military and general spending, much of which goes into the pockets of contractors and other corporations that provide goods and services to the government. When they then pay the social security and Medicare out of revenues, they are, in reality, paying back what they borrowed and spent. This should not be seen as a Social Security or Medicare expense in the budget process. It should be seen as debt service to the Trust Fund that was borrowed and spent on other [unrelated] budget items that fattened many American investors.
Dot 4: Tax cuts do nothing to reduce deductions or increase income for most of the people who fund Social Security with the payroll tax. The payroll tax is not reduced and only taxed on the first $128,700 of income.(3) The highest income “earners” benefit hugely from the tax cut. The lowest earners benefit not at all.
Dot 5: That's when conservative politicians of both parties point to the expense of Social Security and Medicare and say it must be cut to balance the budget. What's wrong with that logic?
Dot 6: That's how the payroll taxes paid by the working poor and lower middle classes ends up in the pockets of the banksters and billionaire and CEO parasites who pay an insignificant amount if any into the Social Security Trust Fund the conservatives are stealing from US coming and going.
That's how conservatives have connected the dots for US.
(1) A little more than 43% of U.S. households -- or 70 million homes - will end up owing no federal income taxes for 2013. ... The households with zero income tax liability are not evenly distributed across income groups. The majority this year -- nearly 67% -- have incomes below $30,000.
(2) As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted. ... immediate reduction in benefits of about 13 percent, or an immediate increase in the combined payroll tax rate from 12.4 percent to 14.4 percent, or some combination of these changes, would be sufficient to allow full payment of the scheduled benefits for the next 75 years.
(3) Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. … We call this annual limit the contribution and benefit base. For earnings in 2018, this base is $128,700.