How Stupid Do They Think That We Are?

As I mentioned earlier, I like to think about and talk intelligently about most things involving economics. I only have a very basic college level education in economics, but having owned my own business for over ten years and having been otherwise self- employed for most of the past fifteen years, I pretty well know "what is what" when it comes to the economics of income taxes and other employment taxes.

That’s why my head is spinning around again today, at thirty six hundred revolutions per minute, over this news story about Florida Democratic Representative Robert Wexler’s proposed solution to the “non-existant” Social Security crisis.

"WASHINGTON — Rep. Robert Wexler, D-Delray Beach, is poised to become the first congressional Democrat to offer a Social Security restructuring plan that does not include private investment accounts.

Wexler, whose district has the largest number of Social Security beneficiaries of any House Democrat, said Friday he plans to introduce a bill Tuesday that would impose a 6 percent surtax tax — evenly divided between employers and employees — on income above the current $90,000 threshold for the 12.4 percent payroll tax."

Oh, I'm so relieved...I only have to pay half of the new tax...well that's certainly OK with me and my banker.

See, here is a DEMOCRAT, a card carrying demagogue representing the political party that would have us believe that there is no (immediate) problem with the Social Security System, telling us that he wants to take another 6% from all of those "dirty rich people" that have "won life’s lottery" to pay for the non-existent shortfall in the retirement program for “working families.”

I just want to toss my cookies when I see such examples of brazen “class warfare” like this.

You do realize that not one single person is ever going to receive a level of social security retirement income payments that would justify taxing incomes at the $90K level. Once you reach about the $60K level of annual income, your social security benefits max out so they are already stealing from high level earners to finance other “less fortunate” retirees.

Let me tell you from long hard personal experience, if you earn more than$90,000 each year and you’re not a drug dealer or a prostitute, you deserve every damn penny you get because you are most likely at work more than you are at home and you probably spent more than sixteen years fooling around in government schools and at the local junior college.

And another thing: Does anyone out there actually believe that your employer pays half of your payroll taxes?

This concept is total, unmitigated, Bull Crap! You Got That?

Any cash that your employer pays in the form of “payroll taxes” is cash that your employer doesn’t have to pay you with. Here is how it works:

As an employer, when you decide to hire a new employee, you don’t just look at the “take home pay” you’re going to hand out on payday. Noooo, Sir…Mr. “Mean old Rich Business Owner” has to look at not only the cash the new employee is going to take home to their Mama or their "old Lady" every other Friday afternoon, but they also have to consider the cost of the “7.65% matching payroll taxes” and the other fringe benefits like insurance and paid holidays that go along with creating that new position.

See, it's really easy when I explain it like that. So just in case you didn’t already understand this concept, let me reiterate…

YOU PAY ALL OF THE WITHHOLDING TAX ONE WAY OR THE OTHER. YOU JUST THINK THAT THE EMPLOYER PAYS HALF SINCE IT NEVER MAKES IT ONTO YOUR PAY STUB!

Understand?