Social Secirity tax 不是联邦税吗？

I have heard of this claim of “52% does not pay Federal Income Tax” so many times that I consider it brain-washing, and propaganda! It’s misleading to say the least. Most of the 52% pay Social Security Tax as long as they are employed. So where does Social Security Tax go, you ask? The annual Federal government budget, just like the Federal Income Tax! So why keep emphasizing this number of 52%, and use it as evidence of tax inequality?

 

Meanwhile, it is the same people spreading the concept of Social Security in crisis, and that Social Security benefits need to be cut. Yet this time, they base their claim on the size of Social Security payment as part of the “Unified” budget while ignoring the Social Security Tax as income to the budget. The fact is that year after year, Social Security Tax as income has been higher than the Social Security benefit payments in the Federal budget. Without this surplus, none of the tax-cut in the past 30 years would have been possible!

 

What irritates me is the lack of integrity from these group of people and politicians. On one hand, they count Social Security as Federal tax income just like the income tax so that they can cut-tax for the rich, and then on the other hand, they keep spreading the lies of poor people not paying tax. You just can not have it both ways!

 

Now I never support the concept of “Unified” budget, and believe the surplus of Social Security tax should be counted separately into Social Security Fund, not into the general federal budget, but it’s the budget cited most frequently nowadays. And with “Unified” budget, you will get the true picture of Federal tax burden distribution after you add Social Security and Federal income tax together; this time you probably will find that people making around $110000 are the group taxed the most because Social Security tax is capped at this income level, and they happen to be the core of middle class in US. No wonder middle class is shrinking.

 

$200000 annual income in the coast areas is still absolutely middle class, and a strong social infrastructure including school, medical care, and retirement are definitely in your interest. Herman Cain is a clown, and the ultra right policy he is promoting are fundamentally anti-middle-class even if it may save you a few bucks initially.