| Thursday, November 21, 2024 |
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I actually donate to FactCheck, but I’m sad to see the sloppiness here: http://www.factcheck.org/2011/08/romneys-run-in-on-social-security/
He said payroll taxes take 15.3 percent "out of your earnings," but only the self-employed pay that rate. All other workers pay half of that, with the other half being paid for by the employer.
Anyone with even a basic understanding of economics understands that it doesn’t matter whether a tax line is printed on your paystub or not, it’s still coming out of your pay.
Say the government cleverly decided: “Hey, Americans don’t like paying taxes. Let’s just institute a payroll tax on the employer for exactly the same amount as currently paid by the employee, and stop taking any money from the employee directly.”
In that event what do you think would happen to the employee’s take-home pay? If you think it would go up, you should probably find a new line of work.
It’s not an accident that the Social Security tax-rate on the self-employed is the full amount.
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