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View Diary: Teabaggers protesting lowest tax burden since Truman (167 comments)

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  •  Uhhh... no. (2+ / 0-)
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    dinotrac, Trotskyrepublican

    Let's say your salary is $1,000.00/wk.  You contribute 7.65% = $76.50 towards FICA, and your employer also contributes 7.65%, or $76.50.  A total of $153.00 gets contributed.  Your net pay, before deducting other types of tax, is $923.50.

    If you think of the employer's portion as really a cost to the employee, because the employer will reduce your wages to make up for its FICA contribution, the pre-tax wage comes to $1,076.50.  Another way to put it is that if you canceled FICA and gave it all back to the employee (you), you'd get $923.50 + $153.00 = $1,076.50.  The actual FICA rate, therefore is $153.00 / $1,076.50 = 14.21%.

    Barack Obama in the Oval Office: There's a black man who knows his place.

    by Greasy Grant on Tue May 11, 2010 at 02:10:25 PM PDT

    [ Parent ]

    •  Oh! Yes, of course!! (1+ / 0-)
      Recommended by:
      Greasy Grant

      Very good.
      Tax day exercises still in my head.

      Yes, absolutely. The real gross is actually your net plus the TOTAL taxes withheld.

      I stand corrected and you stand correct.

      Free speech? Yeah, I've heard of that. Have you?

      by dinotrac on Tue May 11, 2010 at 02:16:36 PM PDT

      [ Parent ]

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