- Posted March 3, 2013 by
Watertown, New York
This iReport is part of an assignment:
- Drug Company,Novatis, Pays U.S. Government $422.5M in Marketing, Kickback, 'Pay to Play' "Fine"
- America- Having Two Jobs Now Necessary to Break Even
- Snow In April In Northern NY? Seriously?
- No Farms, No Food. Right? No Jobs, No Economy? Not Quite True..
- U.S. Government Finances Yet More of China's Technological and Manufacturing Superiority
A 15% Self -Employment Tax is Unfair For Americans Forced to Work For Themselves
Self - Employment Tax is something the average Joe pays, but not the well connected.
"The self-employment tax in the United States is typically set at 15.30% which is roughly the equivalent of the combined contributions of the employee and employer under the FICA tax.
The rate consists of two parts: 12.4% for social security and 2.9% for Medicare.
The social security portion of the self-employment tax only applies to the first $110,100 of income for the 2012 tax year.
There is no limit to the amount that is taxable under the 2.9% Medicare portion of the self-employment tax."
When you own your own business, you pay more in Social Security Tax than you would if you worked for someone as their employee.
Yes, there are more deductions as a self-employed person.
American Workers are losing their jobs, then running out of Unemployment Benefits, and are forced to be self-employed.
"Further, some research shows that higher local unemployment rates lead workers to self-select into self-employment."
Government is failing to help produce jobs. Now, with the sequester, more jobs will be lost. Stupidity? No. This has been carefully thought through by the ruling class.
Their answer appears to be to screw the middle class and give more to their rich contributors.
So what right does the government have to charge someone that's been forced to be self-employed more in Social Security because there are no good paying jobs working for a private sector employer?
This is especially egregious when many corporations, making billions in profits pay 0% in taxes.
"Between 2008 and 2011, 26 major American corporations paid nothing in federal corporate income tax, despite making $205 billion in pretax profits.
In 2011 (the last year in which data is available), corporations paid just a 12.1 percent effective tax rate, the lowest in four decades.
Many wealthy individuals, meanwhile, are able to drive their tax rates down below the rate paid by middle-class families.
Some drive it all the way down to zero."
If you form a "S Corporation", your taxes are different and much lower.
"John Edwards/Newt Gingrich found a loophole in the tax law."
Both the former presidential candidate and the former Speaker of the House have taken advantage of a provision allowing them to dodge payroll taxes.
By forming “S corporations,” Edwards and Gingrich are able to classify the money they receive from various ventures as “business profits,” rather than payments for services rendered, which exempts that money from the payroll tax.
This loophole is regularly abused by lawyers, doctors and accountants, who can count the work they do every day as part of operating a “small business” that consists only of themselves.
As tax expert Seth Hanlon noted, “Regular wage-earners can’t do this, and neither can the owners of other kinds of small businesses.”
Tax loopholes Rep. John Boehner says 'can't be closed:
Private Jet as Security Write-Off?
10 Most Insane Tax Loopholes
1. CEO “private security.”
2. Florida cow scam. In Florida, wealthy developers, lawmakers and even some corporations game the tax code by placing cows on their land for a limited amount of time each year, thereby qualifying for agricultural tax breaks.
3. Facebook stock options. The social media giant Facebook made more than $1 billion in profits last year, but paid no corporate tax thanks to a huge write-off after its initial public offering.
4.Bluegrass boondoggle. This tax break, created by Senate Minority Leader Mitch McConnell (R-Kentucky) in 2008, gives wealthy horse owners a break worth $126 million over 10 years
5. Sheryl Crow loophole. Low tax rates on investment income are one of the main reasons the wealthy are able to pay lower taxes than those in the middle-class
6. NASCAR tax break. Thanks to a provision in the 2008 bank bailout, owners of NASCAR tracks are able to write off the costs of their facilities over seven years, rather than “over the 39 years
7. John Edwards/Newt Gingrich loophole
8. Tax breaks for vacation homes and yachts
9. “Double Irish” and “Dutch Sandwich.” Many companies, from Google to Amazon to Starbucks, use offshore tax havens to drive down their corporate tax rates, sometimes down into the single digits.
10. Large SUVs. We’ve already discussed the yacht tax break, but going out and purchasing a large SUV will get a member of the 1 percent another write-off."
Complete story and more:
Lords of Disorder: Billions for Wall Street, Sacrifice for Everyone Else
Share the pain, Fellow Americans? What choice do American workers have?
Sure. So why don't the rich start first? Do you think they're feeling any pain?