So I hear some people saying that it will "raise taxes" if we don't extend the pay roll deduction decrease. Hello people is anyone really so stupid and to think it affects our net at the end of the tax year. They deduct this money (FICA), but at the time we prepare our tax return for the year we owe X amount. If our employer didn't send in that much because the government told them to withhold less we're gonna owe it on April 15th You see no one's tax RATE changed. FICA is Social Security and Medicare withholdings (NOT INCOME TAX) Of course if congress wasn't constantly "borrowing" money from the Social Security pot.
When everyone goes to do their 2011 tax return and they used to "break even" chances are they are going to have to pay. It's not a tax cut unless the rate you owe changes. Now mind you it's helpful to those 49% of people who DON'T PAY any taxes in the first place. They got to spend their money sooner rather than after they fill their 2011 taxes and get it all returned to them along with whatever extra of my and your taxes they get sent in the form of earned income credit. (Earned? Earned my behind)
So please people stop calling it a tax cut. It's not a tax cut, it was never a tax cut and it doesn't affect one way or another what you owe or get back. It was simply a change in FICAl with-holdings And let's see unless you pay the maximum what it's actually doing is making your Social Security contribution less and there-by changing what you will be paid upon retirement. That $20.00 a week isn't going to make/break anyone. It's just isn't. Now if this FICA cut had been passed on to employers... WOW now that might have created a job here and there. But Employers had keep paying 7.65% FICA on every salary dollar.
And I don't know about you, but please after 99 weeks of unemployment we (and by we I mean those of us owning companies who have not fired/laid anyone off) but have still seen increases in our unemployment tax as a result of extension after extension, ENOUGH ALREADY. Meanwhile I hear farmers in south Georgia had crops go to waste because no one would work and apples were going to waste in Washington state because no one would pick them. Damn it if my family was hungry you bet your bippy I'd pick apples all day for $100.00.
Oh and there's something else you need to know that is STUFFED into this Senate Bill that the president is calling on the "Republicans" in the House to pass: They have language in the bill about payroll deductions to charge a new FEE on government backed loans. That's right Freddie and Fannie will be charging and passing along a new tax. Read article here Yeah that should help the housing market. NOT.
And while we're on the Fannie/Freddie subject. Let me tell you I'm about to have to make some phone calls about a canceled by the seller REO contract to one of my buyers. If I can get the buyers permission I'll be writing a public post about that later on today.
Meanwhile America just hang on... I'm sure they have some new stupidity to spoon feed feed us again next week and the week after that. But frankly the American people should enforce term limits on congresss with our vote. I mean they have a less than 25% approval rating and we keep sending them back? How does that happen?
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