With the American economy firing on all cylinders after President Trump cut taxes two years ago, Democrats have come along with a plan to raise taxes. The plan is to raise the payroll tax from 12.4% to 14.8%. The plan would increase the share of GDP of Social Security taxes from 4.5% to 6.5%. Investor’s Business Daily reports:
Amid all the hoopla about Democrats wanting to raise taxes on the rich, they are quietly working on a bill that would increase taxes on every working family in America. Why? To fund expanded benefits for baby boomers hitting retirement.
The Social Security 2100 Act would hike the combined payroll taxes paid by workers and their employers from 12.4% today to 14.8% by 2043. The bill would also apply the payroll tax on incomes over $400,000.
According to the Social Security Administration, in the first 12 years alone, this would amount to a $1.5 trillion tax hike.
A Staggering Social Security Tax Hike
Once the tax hike’s fully phased in, workers and employers will be paying $340 billion more a year in payroll taxes.
As a share of GDP, Social Security taxes would rise to 6.5%, up from the current 4.5%.
For families making the median income, it means paying an extra $720 a year to Social Security. But that’s only half the tax bite. The employer’s share effectively comes out of workers’ pockets as well, in the form of lower wages. So, the real increase is more like $1,400 a year.
It is, in other words, a staggering tax hike.
Read more here.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- What Can We Learn from Hurricane Season? - September 28, 2022
- FOLLOW THE MONEY: Wealthy Americans Fleeing High Tax States Faster than Others - September 28, 2022
- RIGHT TO WORK: Ford Will Build New Truck in Kentucky - September 28, 2022
- Prices Are Like Adult Kids: You Don’t Have Much Control Over Them - September 27, 2022
- HALF A TRILLION DOLLARS: Student Loan Bailout Will Cost over Twice What Biden Promised - September 27, 2022