What’s Really Real about the Payroll Tax Holiday!
You gross $500 a week ($26k yearly) after the 6.2% increase (the amount that you have deducted from your check for the payroll tax) you’ll now keep an additional $31 per week.
To do the math for what you make, just add $6.20 for each hundred that you bring home weekly.
Now multiply that by how many weeks you have left in the year, sixteen as of today. And now you know exactly how much the Payroll Tax Holiday is going to net you over the coming months.
At $500 a week, that’s $31 x 16. So that’s $496 over the next four months!
But guess what, 44% of all Americans between 16-64 are grossing under $22k a year before taxes! That’s approximately $420 a week, so at the end of the day, we know that 44% of US citizens will receive less than the $496 that this executive order doles out, of you gross $500 a week.
Now to the good part. Next year when the tax holiday is over, your employer will then start to take double out of your check for four months to compensate for the money that you didn’t pay this year. So if you were grossing $500 a week and $31 was going to payroll taxes, then starting in January, you’ll start paying $62 a week. Plus you’ll still have to pay whatever taxes you owe.
How many cash strapped people can afford to lose an additional $31 off they’re paychecks if they’re barely making it by now?
So what’s going to be the solution come January? The Get Out Party will argue for a permanent tax cut. And lower income Americans will want to make it permanent so their paychecks won’t decrease.
The RepubliCons will argue that the Democrats want yo go up on your taxes, and a lot of these under-informed Americans will go with them on it because technically they will be a tax increase.
The thing is, a portion of the money from the payroll tax is used for social security. And if a payroll tax cut is made permanent, it will make social security go insolvent way faster than economists warned!
Do the research, RepubliCons have been trying to privatize the Social Security money for the past few decades, it’s trillions of dollars in the black! And they’ve been trying to get to it so they’re rich buddies can play with the money on Wall Street!
They’re trying sabotage it so it looks like it will go insolvent faster so they play up the reasons why it should go into the hands of the private sector.
We’ve seen what can happen when Wall Street runs a muck and if they get their hands on that SS money, and the markets crash, the whole SS system will crash with it, and there goes your safety net, that mind, you’ve been paying into your entire life!
And what’s really sad about this is that if the market crashes and SS becomes insolvent, guess what’s going to happen. The Fed is going to print more money out of thin air and the tax payers will be on the hook for it again, but our safety net will be gone.
A permanent payroll tax cut puts the money that you’ve paid into the system in jeopardy and it might not be there when you retire and need it the most..
And by the way 46.5% of Americans make less than $30k a year!