Friday, August 13

The FICA Ripoff

Something to ponder from Michael O'Brien...

More Americans pay more for FICA (social security and medicare) then in federal income tax. FICA is 14% -- if you are self-imployed you pay it all yourself, if you work for a company, they pay 7% and you pay 7% (a so-called 'payroll tax'). But few know that you only pay FICA up to $87,000 a year. Anything over this amount is not taxed for FICA. So if you make $100,000, you are not taxed on your last $13,000. If you are Bill Gates and make several billion a year, you pay something like 0.000000000000000000000000000000001% in FICA.

Now this is the kicker -- congress spends FICA money on Iraq, highways, education, federal parks, etc. -- which means that the ultra-super-rich are exempt from a tax that is used for basic governmental operating expenses. I have no idea why more people are not outraged about this. Why should I pay a higher percentage of my taxes than Bill Gates? THIS is class warfare.