Social Security tax cut affects all, pumps 120 billion into economy

[spidey07]

By the way, I wish we could see the breakdown of what people do with this "extra" money. Personally, I probably won't do anything but save it. In the long run, it may reduce the time until I buy a house by like....5 weeks. But thats ~1.5-2 years away.

Probably a 40% of people just blow it immediately, which is fine, that's what they want people to do. Some will probably increase their retirement savings. Hmm.

A large majority of the population spends whatever their paycheck is regardless of how large or small it is. So that tends to reason most people will spend the extra money they see in their check.

 

[ayabe]

The HCE limit is 106,000. After that you don't pay social security. If you and your spouse both make 106,00 or more you will get an additional 2% from each salary.

100,00 * .02 = 2000 dollars. Dual income family, each earning 100,000 or more = 4000 dollars.

It's real simple to figure out, just multiply 2% times gross yearly wage. At 50,000 GROSS that's 1,000. Not chump change and larger than the making work pay. At 70,000 that's 1400. That's a whole lotta stimulus and money in peoples pockets, of course it was theirs to begin with.

Thanks, the numbers spouted on NPR this morning didn't seem as straightforward thus I didn't do the math.

Individuals making less than 20K and couples making less than 40K are coming out worse though because their savings wouldn't reach the $400/$800 that they were getting.

 

[spidey07]

Thanks, the numbers spouted on NPR this morning didn't seem as straightforward thus I didn't do the math.

Individuals making less than 20K and couples making less than 40K are coming out worse though because their savings wouldn't reach the $400/$800 that they were getting.

Making work pay is also extended. This is on top of that. It positively affects ever single wage earner who pays social security, which effectively is everybody except government employees.

It's REAL stimulus of significant dollar amounts to every worker. Remember, SS/FICA is calculated on GROSS income, not adjusted.

 

[rcpratt]

Making work pay is also extended. This is on top of that. It positively affects ever single wage earner who pays social security, which effectively is everybody except government employees.

It's REAL stimulus of significant dollar amounts to every worker. Remember, SS/FICA is calculated on GROSS income, not adjusted.

Hadn't heard that. Link?

This says it's not extended.

 

[piasabird]

Dont pay social security. I work in education.

 

[theeedude]

Gonna get a couple grand more to play with. Still going to demand and vote for politicians who give me my SS bennies tho

 

[piasabird]

How can they have a reduced SS Tax when SS is insolvent in the red?????

I think we could live with no SS Cap.

 

[Throckmorton]

Means dick to working people making less than 50K a year, they will get less than the previous Making Work Pay credit. Yeah it means more for those earning 70K a year since that was the cutoff previously.

Not sure where some people are pulling this 4K number from, unless you're making 300,000K+ and year...keep dreaming. More like ~$1200 a year if you're making 70K.

I think it comes out to $60 per month for me. I make about 35k. Jubilee jubilee, now I can afford cable TV

 

[theeedude]

How can they have a reduced SS Tax when SS is insolvent in the red?????

I think we could live with no SS Cap.

Same way the GOP can reduce income tax when the general fund is insolvent and in the red too
The American people have spoken, tax cuts don't need to be paid for.

 

[ayabe]

How can they have a reduced SS Tax when SS is insolvent in the red?????

I think we could live with no SS Cap.

They're going to raid the 120 billion out of future tax revenue(*wink *wink)

There should be no cap and SS should be means tested, bam! solvent for the next 100 years.

 

[Throckmorton]

BTW, anybody notice how spidey07 calls it the "Republican tax plan"?

So we don't get to call it the Obama Tax Cut even though he bargained with Republicans to get it in exchange for their precious tax cuts for the top 2%?

 

[umbrella39]

BTW, anybody notice how spidey07 calls it the "Republican tax plan"?

Yes I have noticed that along with the fact that he is a transparent hack that does/is all the things he claims to hate. Big shock. The modern day GOP fanboy waiting for his wife to come home with her paycheck so he can gamble it away.

 

[DrPizza]

Dont pay social security. I work in education.

Huh??

 

[Darwin333]

Making work pay is also extended. This is on top of that. It positively affects ever single wage earner who pays social security, which effectively is everybody except government employees.

It's REAL stimulus of significant dollar amounts to every worker. Remember, SS/FICA is calculated on GROSS income, not adjusted.

Its real stimulus alright. Unfortunately it will likely stimulate the Chinese economy more than our own but at least they loaned us the money right?

 

[Throckmorton]

Its real stimulus alright. Unfortunately it will likely stimulate the Chinese economy more than our own but at least they loaned us the money right?

I'm spending my Obama Tax Cut only on American goods.

 

[Darwin333]

I'm spending my Obama Tax Cut only on American goods.

Outstanding! Only a few hundred million more Americans to convince...

 

[Darwin333]

They're going to raid the 120 billion out of future tax revenue(*wink *wink)

There should be no cap and SS should be means tested, bam! solvent for the next 100 years.

You mean more money for them to "borrow" without actually having to put it on the books (at least the "books" they tout to the people) for another 100 years. Bernie Madoff could have been solvent for another 100 years too if he had more funding...

 

[Darwin333]

Same way the GOP can reduce income tax when the general fund is insolvent and in the red too
The American people have spoken, tax cuts don't need to be paid for.

Neither do spending increases which is why I say we be fucked and if we be fucked lets at least go down with a bang. I propose a big ass federally funded party next 4th of July. An open bar for the entire country and fucktons of fireworks and I really mean a fuckton, hell for that one day we should go so far as to give free hookers AND blow to all that desire it. Leave no doubt that we can throw the best damned party in the world (as long as someone else is paying the tab). Then we tell the people we borrowed the money from to get bent. If they have a problem with that we can send a few carrier groups to negotiate.

 

[Throckmorton]

Outstanding! Only a few hundred million more Americans to convince...

Considering we're all in debt to American credit card companies, that won't be that hard.