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View Diary: Naked Capitalism: $205 billion in obscured corporate subsidies in Fiscal Cliff bill (updated) (195 comments)

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  •  Does the payroll tax pay for Social Security (0+ / 0-)

    or does it not?

    •  For your convenience, I'll quote myself: (3+ / 0-)
      Recommended by:
      bobswern, fuzzyguy, emal

      "The 2% was being made up out of general fund money".

      Also, I'll quote the IRS itself:

      IR-2011-124, Dec. 23, 2011

      WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

      "No effect on employees' future Social Security benefits".

      Because the 2% was being repaid into the SS fund out of the general fund.

      Sure, the payroll tax pays for Social Security. But Social Security was still being paid from other sources while the 2% cut was in effect. So your question is irrelevant to this aspect of the discussion.

      "Bernie Madoff's mistake was stealing from the rich. If he'd stolen from the poor he'd have a cabinet position." -OPOL

      by blue in NC on Wed Jan 02, 2013 at 08:43:25 AM PST

      [ Parent ]

      •  So you're claiming that a tax which pays (0+ / 0-)

        for Social Security should be held in suspicion because it's regressive and because it's been raised by this administration. Those two facts, you claim, nullify any progressive value it has.

        •  Do you even know what a "progressive" tax (2+ / 0-)
          Recommended by:
          fuzzyguy, emal


          How on Dog's Green Earth can you claim that a tax that is

          1) flat, and
          2) levied on the first dollar earned, and
          2) capped

          is in any way "progressive"?

          The payroll tax is even more regressive than the second-most regressive tax out there, the sales tax, because at least the sales tax isn't capped in most states that I know of.

          I'm not opposed to funding SS, of course, but please at least get your terminology right!

          "Bernie Madoff's mistake was stealing from the rich. If he'd stolen from the poor he'd have a cabinet position." -OPOL

          by blue in NC on Wed Jan 02, 2013 at 09:51:54 AM PST

          [ Parent ]

          •  Because s/he is not so much interested in (1+ / 0-)
            Recommended by:
            blue in NC

            Having correct facts or in being right. But mostly interested in trying to muck up /distract away from anything anyone has posted  that s/he perceives as negative or critical done under/by this administration.

            The Plutocratic States of America, the best government the top 1% and corporations can buy. We are the 99%-OWS.

            by emal on Wed Jan 02, 2013 at 05:35:49 PM PST

            [ Parent ]

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