FICA is now capped at $113,700 for 2013. It goes up every year. Note, that is per individual salary, not per family. So if each person makes the max that FICA is taxed at, $113,700, you will pay FICA at a family wage until $227,400. Medicare taxes go up on income over 250K this year, increased by 0.9%. Deductions will be limited at family income over 300K, which is something insidious that may raise some people's tax that they aren't even noticing. The lowering of FICA taxes by 2% was only supposed to be for two years, so there should be no surprise that it has returned to previous levels. But of course, none of this will be enough since they refuse to cut spending.
The sweet spot is absolutely not to be a wage earner between 110K-400K, at those income tax rates you are still paying a good percentage of your income in various taxes. The sweet spot is to be a very high income person, who is not a wage slave, but gets taxed at low capital gains rate. Whether you are getting taxed at 35% of a good portion of your income vs 39.6% of your income, you are not exactly at the sweet spot. Now if you getting taxed at below 15% at an income of 10 million.....that's a sweet spot.
I'm thinking the best deal would be to be that 10 million dollar person, living in a low cost area like Vancouver, WA, with no state income tax, but close enough to drive over to Oregon to do your shopping. Actually, I'd like to be that 10 million dollar earner anywhere.
FICA taxes are capped at max wage income of 110K. Anything above 110k is exempt from FICA taxes,
The numbers I gave for the illustration are multiples of 110. The sweet spot is be a wage earner between 110k and 400k because FICA is capped and there is no marginal federal tax increase. Further, it helps to live in WA where there is no state income tax vs OR with a base income tax of 9% and an additional 2% on high wages.
I've been middle income or less for more years than I've made a good income. And I can tell you, I sure didn't pay much in taxes then. I wouldn't have said it sucked, it was just harder, and I had different choices.
FICA taxes may have snapped back to what they used to be, but higher income wage earners are still paying through the nose, at a far greater rate. The FICA is just a small part of it. Social security was never meant to be a welfare program, where the rich support the poor. Maybe it's time to change it, where people aren't even funding a portion of their retirement, and those who make more money are pulling the entire load. I don't know, but it does seem that people ought to have some responsibility for their own future (or that of their elders), especially if they aren't going to save any money.
We actually agree here, lp -- those who don't need it, won't get it, though they'll still be labeled selfish little haters for not paying a bigger share of what they're never going to get -- while liars blowing smoke up the bums of fools (Albert Gore for instance) will still be talking about a "lockbox", somewhere up in DC.
According to my neighbor (son is head of a large urban chamber of commerce) the R’s are waiting (3months? 6months?) for the working-class to see/feel the effects of Obama’s policies (mainly Obamacare).Although it wasn’t reported in the media but LOTS of working folks were outraged when their take home pay decreased at the beginning of the year. R’s believe they can capitalize on the public’s unhappiness when the state exchanges and businesses have to start implementing Obamacare .
Did I hear right? Congress House (R) raised the debt limit for 3 months to approx Ap-May?
TV political talking heads (Jan 19) are saying the R's don't have a choice but to extend debt limit. Boehner doesn't have enough support to make any kind of deal. PBO is playing hard and for keeps, knowing that the R's are self destructing. Business, businesses large and small, are beginning to firm conclusion that R's are costing them $$$$. Voters saw their immediate take home pay go down 2% while very wealthy saw their tax rate go up 4%, payable April 2014.
Wage
This is weird, I want to make a Reply, but I get an Edit screen to OP.
Anyhow, Senate: It takes 60 votes to bring a bill on to the Senate Floor. This is not for debate but just to introduce a bill. A recent NPR did a feature on this and on filabustering. Semator Merkley (D-OR) is proposing new rules on filabusters-like actually speaking on the floor to fllabuster.
Did I hear right? Congress House (R) raised the debt limit for 3 months to approx Ap-May?
TV political talking heads (Jan 19) are saying the R's don't have a choice but to extend debt limit. Boehner doesn't have enough support to make any kind of deal. PBO is playing hard and for keeps, knowing that the R's are self destructing. Business, businesses large and small, are beginning to firm conclusion that R's are costing them $$$$. Voters saw their immediate take home pay go down 2% while very wealthy saw their tax rate go up 4%, payable April 2014.
Did I hear right? Congress House (R) raised the debt limit for 3 months to approx Ap-May?
TV political talking heads (Jan 19) are saying the R's don't have a choice but to extend debt limit. Boehner doesn't have enough support to make any kind of deal. PBO is playing hard and for keeps, knowing that the R's are self destructing. Business, businesses large and small, are beginning to firm conclusion that R's are costing them $$$$. Voters saw their immediate take home pay go down 2% while very wealthy saw their tax rate go up 4%, payable April 2014.
Did I hear right? Congress House (R) raised the debt limit for 3 months to approx Ap-May?
TV political talking heads (Jan 19) are saying the R's don't have a choice but to extend debt limit. Boehner doesn't have enough support to make any kind of deal. PBO is playing hard and for keeps, knowing that the R's are self destructing. Business, businesses large and small, are beginning to firm conclusion that R's are costing them $$$$. Voters saw their immediate take home pay go down 2% while very wealthy saw their tax rate go up 4%, payable April 2014.
Wage slaves need to work more and the wealthy need to work less.
I'm using my Toshiba Satellite, 8yo, with a broken screen (using an external monitor) My Dell Latitude died last week (bad Hdrv in boot sectors). Picking up a Acer Aspire 17in today after I make a bank withdrawal.
Anything that makes you laugh is a good thing, romani.
Good luck with the macbook, lp. It almost seems worth it to not have any viruses. My husband keeps swearing at his Toshiba, maybe the next one will be a mac.
PBO drew the line as has the Republican House majority.
IMO, The House has lost again. Their argument is good but not persuasive. The financial and other equities (housing, rentals, commercials, etc) are going to be roiled again to no good ends.
We need maybe 3-6 months for tax reform, budget reforms, and for the the Nation to come to recognize the new order.
. But 
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