Poor people question

[tenureplan]

will those of us getting the payroll tax holiday have to pay back all the back taxes when the holiday is over?

 

[Dawgtruc]

will those of us getting the payroll tax holiday have to pay back all the back taxes when the holiday is over?

I'm pretty sure the answer to that question is YES. Don't expect a tax refund next April.

 

[T-TownDawgg]

Trump say
"Not if you re-elect me"

 

[RocketDawg]

I heard a reporter today say that the executive order will hurt the Social Security system. Does "payroll tax holiday" include FICA, or just income tax deduction? It's also only for people who make less than $100K.

 

[8dog]

Those people would not immediately pay FICA so the ss system could have cash flow issues. I cant see the benefit in a. Asking people to go spend money the gov will likely come back after or b. Enacting something which doesnt help people who are not making money bc of covid

 

[Leeshouldveflanked]

I heard a reporter today say that the executive order will hurt the Social Security system. Does "payroll tax holiday" include FICA, or just income tax deduction? It's also only for people who make less than $100K.

Congress hurt the Social Security system over the years by paying for their pork with SS $$$$

 

[57stratdawg]

Isn’t that a better question for Congress?

 

[RocketDawg]

Those people would not immediately pay FICA so the ss system could have cash flow issues. I cant see the benefit in a. Asking people to go spend money the gov will likely come back after or b. Enacting something which doesnt help people who are not making money bc of covid

Correct. It doesn't help the unemployed at all. One of the other orders he signed does though, if I heard it right. He restored unemployment benefits, but with changes. People can't make more on unemployment than they did when working.

The whole thing's probably going to be challenged anyway.

 

[RocketDawg]

Yep. I also never understood why there was a cap. Seems like removing the cap would solve all the SS funding issues (in normal times).

 

[Msubulldogfan1]

“Poor people question”


Me: yes sir, how may I help you?

 

[PineGroveBully]

Yes it’s FICA only, will have no bearings on federal withholding. And to Tenure’s question when they last did the payroll tax holiday it was my first or 2nd year doing public taxes and I’m 99% sure it had no bearing on people’s return. This “law” should be mirrored after that one.

 

[Crazy Cotton]

LOCK BOX He tried to warn us.....

 

[Bulldog from Birth]

The reason for the cap is simple. The intent of social security is to be a retirement buffer to replace your lost income. For those people who make higher incomes, they pay more overall in social security taxes since it’s a fixed percentage. But then they end up getting a bigger social security check in retirement because of that. But the government didn’t want to pay ridiculously high payments to the wealthy so they capped the max monthly benefit. And to be fair, they capped the max amount of income that would be taxed to match the eventual payout in their calculation.

And while removing that cap on the income side would help social security balance sheet (as long as you didn’t also remove the cap on the retirement payout for those folks), it doesn’t come close to solving social security’s coming crisis.

Yep. I also never understood why there was a cap. Seems like removing the cap would solve all the SS funding issues (in normal times).

 

[natchezdawg]

Maybe because...

12.4% of $137,000 is the most anyone person should have to pay a diminishing return?

 

[GloryDawg]

Yes it’s FICA only, will have no bearings on federal withholding. And to Tenure’s question when they last did the payroll tax holiday it was my first or 2nd year doing public taxes and I’m 99% sure it had no bearing on people’s return. This “law” should be mirrored after that one.

Personally I don't think this will not go into effect. Not because of court challenge but because Trump is coming out looking like the only person in DC who is trying to get things done. I just don't believe both parties are going to let that happen. I suspect this will put tremendous pressure on both parties in Congress to get it done. It will happen now. This is Trumps plan.

However if it does get challenge in court Trump will win. Every one of his executive orders had stood. When he tried to cancel Obama's DACA executive order the Supreme Court ruled against him. They have really given the President a lot of power with these ruling. Especially the DACA one.

Also it will not have to be paid back. No one is going to be the politician that lets that happen. Does not matter who wins the presidential election.

 

[WilCoDawg]

Congress hurts SS.

 

[dawgoneyall]

“Poor people question”


Me: yes sir, how may I help you?

Similar...I was raised poor and plan on dying thinking I am poor.

 

[birdawg]

Correct. It doesn't help the unemployed at all. One of the other orders he signed does though, if I heard it right. He restored unemployment benefits, but with changes. People can't make more on unemployment than they did when working.

The whole thing's probably going to be challenged anyway.

That's right. R's wanted $200/week and D's wanted $600/ week, and the EO split the difference at $400/week.

As far as payroll tax, for now it is only "deferred" meaning you have to pay it back. But he's trying to 1. provide a tax credit to replace the deferral 2. make it permanent

 

[thatsbaseball]

The payroll tax cut without a specific plan going forward on how medicare and SS will be funded in the future can only cost Trump and his "coat tails" votes. He's been told by is own party (senate and house) they wanted no part of it. Hate to say it but his ego may be "writing a check his body can't cash". This is gong to play bigger in this election than many understand at this point.

 

[BigDog72.sixpack]

The payroll tax cut without a specific plan going forward on how medicare and SS will be funded in the future can only cost Trump and his "coat tails" votes. He's been told by is own party (senate and house) they wanted no part of it. Hate to say it but his ego may be "writing a check his body can't cash". This is gong to play bigger in this election than many understand at this point.

Doesn’t seem to bother congress on spending SS money for pork. It’s each workers money. Let them keep it. Why keep printing money for out of work folks, who are killing it BTW, but all of us that have been working since this China virus with nothing to match. I love it!! Hope it’s permanent so all you wakes can understand how much the Bidenistas are plucking away weekly for all their lib buddies.

 

[RocketDawg]

It could well be positive for Trump for the people who get the money, and that's anybody making less than $100K. The average in the country isn't that high, so he could pick up quite a few votes.

He woudn't have done it if he didn't think it would be a good political move. He's a politician, just like the Dems.

 

[thatsbaseball]

I'm anything but a "wake" and your reading comprehension says you're anything but smart. This election is gonna be closer than I want it to be. The senior vote has been something we republicans have been able to bank on for a while . You take away the funding for SS and medicare and they're gonna want to know specifically how those funds are going to be replaced. Everybody from McConnell on down have told Trump they don't have the votes to do this...wonder why. And for the record stupid, shouldn't the people who have been "working since the China virus" consider themselves fortunate ?

 

[thatsbaseball]

Oh I hope you're right but the senior vote is important too. Looks to me like he could simply state his plans for the future funding of these programs and as Barney Fife says "nip this in the bud".

 

[JungRebel]

Nothing to match? How about your stimulus, healthcare and 401k match (the latter two which are tied to said employment)? If you havent taken care of yourself and profited off of this at least a little somehow that's on you.