Say you are a single filer, no other deductions, earning $25,000 per year. You don't pay any federal income taxes today, but you do pay FICA.
Under Obama's plan, not only would you pay no taxes, you would get a FICA credit, meaning that you wouldn't pay any FICA either, and in fact, you would get a check in the mail from the government. Essentially, Obama throws away all pretense that Social Security and Medicare are government retirement plans, and he turns them into re-distributionist welfare plans for the elderly. Now, I'm not clear on exactly how they will account for the FICA payments and credits, but I suspect that he will count the FICA payments and then count the credits as tax credits, not FICA credits. Otherwise Social Security and Medicare will run out of money far faster than they otherwise would. On Wed, Oct 15, 2008 at 12:35 PM, Zaphod wrote: > still not seeing this part: > > -- ** These refunds have the ability of reducing a taxpayer's > liability below zero, meaning they can get a refund without actually > paying taxes. ** > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:274603 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
