Long Position on Silver and Gold?

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03-19-2016, 11:53
Irving

It's the same as a 401k. I don't think things that aren't considered commerce transactions should be taxed.
03-19-2016, 12:22
Skip

Quote:

Originally Posted by Irving

It's the same as a 401k. I don't think things that aren't considered commerce transactions should be taxed.

I agree. But then why are SS contributions taxed?

And it's not really the same...

401K contributions go into a self-directed account with your name on it.
Social Security contributions are transfer payments.
03-19-2016, 12:35
Irving

Just because SS is taken out pre-tax. The idea is most likely that you benefit because you are in a higher tax bracket during your working life than you will be when you're retired and your only income is SS. That's not quite the case now compared to when SS was created, but it still holds true.
03-19-2016, 13:43
Skip

Quote:

Originally Posted by Irving

Just because SS is taken out pre-tax. The idea is most likely that you benefit because you are in a higher tax bracket during your working life than you will be when you're retired and your only income is SS. That's not quite the case now compared to when SS was created, but it still holds true.

Based on the idea you will get what you have paid in+.

And that $24K cap (or whatever it is now) doesn't go as far as it used to.

They should just admit it's a tax, stop taxing on top of it, and tax distributions. This would be closer to a 401K. You are not taxed on 401K contributions but you are likely to be taxed on distributions above the combined cap.
03-19-2016, 13:47
HoneyBadger

Quote:

Originally Posted by Skip

Based on the idea you will get what you have paid in+.

And that $24K cap (or whatever it is now) doesn't go as far as it used to.

They should just admit it's a tax, stop taxing on top of it, and tax distributions. This would be closer to a 401K. You are not taxed on 401K contributions but you are likely to be taxed on distributions above the combined cap.

Or we could just scrap the whole program and allow people to invest as they see fit instead of relying on the nanny state to care for them in their retirement. The whole program is just one gigantic step into a welfare state.... Because who would bite the hand that feeds them, right?
03-19-2016, 18:21
Big E3

My SS payments are called self employment tax and it's 15%. So it will clearly be a tax on a tax when they start paying me SS.
03-19-2016, 21:47
brutal

Quote:

Originally Posted by Big E3

My SS payments are called self employment tax and it's 15%. So it will clearly be a tax on a tax when they start paying me SS.

Taking a chance and busting your ass to make a living for yourself and then getting double/triple taxed sure is s kick in the nards, ain't it?
03-19-2016, 22:02
kidicarus13

Quote:

Originally Posted by brutal

Taking a chance and busting your ass to make a living for yourself and then getting double/triple taxed sure is s kick in the nards, ain't it?

Who else is going to support Bernie's peeps?
03-19-2016, 23:29
Mazin

Quote:

Originally Posted by Skip

Based on the idea you will get what you have paid in+.

And that $24K cap (or whatever it is now) doesn't go as far as it used to.

They should just admit it's a tax, stop taxing on top of it, and tax distributions. This would be closer to a 401K. You are not taxed on 401K contributions but you are likely to be taxed on distributions above the combined cap.

More Reason to open a Roth. I can't see taxes being at a lower rate when I get ready to retire.
03-19-2016, 23:56
Irving

Quote:

Originally Posted by Mazin

More Reason to open a Roth. I can't see taxes being at a lower rate when I get ready to retire.

They will be when you're in the "unemployed" tax bracket.