They say the devil is in the details. But this Tax Cut, so “reluctantly” endorsed by President Obama, may be more of a Three Card Monte game.
In the negotiations, one of the concessions claimed by Obama was the 2% Payroll Tax cut, to be taken from the Social Security/Fica. There are two components, Social Security and Medicare. The proposal is to cut 2% from the employees contribution to Social Security. Everyone knows the employer must “match” the employee withholding. The current rate for the Social Security portion of Fica withholding is 6.2% matched by the employer = 12.4%.
Now the Tax cut of 2% to the employee will be matched by the employer 2%, for a total of 4% out of a total 12.4, that is approximately 1/3 ONE THIRD cut not only to you and the employer, it is a cut in the Revenue Stream to Social Security each year. The effects of a ONE THIRD reduction in Social Security Revenue Streams is cataclysmic. It not only severely weakens the individual down the road at retirement, it puts us all at risk, right now.
If the argument is that it is only 2% to the employee, wait till the Final Bill is written! The common language, even on professional sights is “employers must match the employee’s contribution”. And like the Bush tax cuts that were supposed to end, these won’t either . Can you hear it now? “We can’t put a tax increase on the employee right now”
They are in fact tearing down Social Security, while at the same time pretending they are worried about it. Now we are all aware of the attempts to privatize Social Security by the Republicans. But are the Democrats in on this too?
The very sad fact for a lot of Americans is that the hope and trust they have been putting into the Democrats has just been betrayed, there is no way in hell, this was an accident. Our Country is being torn down. We need to put an end to this nonsense right now!
700 billion in ten years to the rich,and two more years at least, destruction of Social Security, more hidden tax cuts, and we had to beg for unemployment benefit extension, Call Them.
House of Representatives contact and phones: http://clerk.house.gov/member_info/index.html
Senators telephones: http://www.senate.gov/general/contact_information/senators_cfm.cfm