If I wasn't FORCED to contribute | TigerDroppings.com

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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

If I wasn't FORCED to contribute


To the PONZI scheme known as Social Security in the form of Self Employment taxes, this is what I could have bought instead:

Health Insurance- comprehensive coverage, and a maxed out HSA contribution.
Short Term, Long Term Disability, and Catastrophic Indemnity Insurance.
Life Insurance-$500,000 30 Year Level Term
Liability, Homeowners, and Car Insurance
Maxed out Roth IRA
$125 Per month to save or invest or blow


And just to be a good citizen, After ALL OF THAT COMBINED, I'd still have between $2,000-2,400 left over to donate to charity. I could protect myself 10000% better than the Government will, (IF THEY ACTUALLY KEEP THEIR PROMISES, THAT IS).


I over-estimated the cost of a lot of these. But this is just Self Employment taxes. I didn't even calculate all the other taxes we get inserted in our collective butts every year.

Rant over



This post was edited on 3/26 at 7:08 pm



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GimmieSomeGlitter
Ole Miss Fan
GreenBOW ALABAMA!
Member since Aug 2011
491 posts

re: If I wasn't FORCED to contribute


Then you go to the grocery store and see people using food stamps to buy steak's and get in an Escalade.







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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


You wanna give me a coronary?





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eng08
LSU Fan
Member since Jan 2013
1536 posts

re: If I wasn't FORCED to contribute


I'm getting a very small refund this year bc of my self employment taxes. First time I have had them, had to call the accountant to help explain it. I thought he had messed up the return.





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


quote:

I'm getting a very small refund this year bc of my self employment taxes. First time I have had them, had to call the accountant to help explain it. I thought he had messed up the return.


How did that happen?






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eng08
LSU Fan
Member since Jan 2013
1536 posts

re: If I wasn't FORCED to contribute


I probably didnt state that correctly, long day.

this year i got married, took rental property deductions, interest deductions, etc. She had a real job last year and I didn't.

Only got 12k in income for myself and couldn't believe how much taxes were.

In years past I had a real job as well and then reduced all the extra income that would fall under self employment with expenses to get near zero. Goal was to make $1 off of the side business.

That is why I was shocked at self employment taxes this year.

Wife was mad I messed up her return...




This post was edited on 3/26 at 8:58 pm


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lnomm34
USA Fan
Louisiana
Member since Oct 2009
7868 posts

re: If I wasn't FORCED to contribute


Poli Board





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18154 posts

re: If I wasn't FORCED to contribute


Couldn't someone make the argument that you would actually see no net affect on your purchase power if SS didn't exist?

For example, if SS didn't exist, employers would lower their compensation because they would no longer have to pay you that "extra" salary that allows you to adequately absorb the SS tax.

Put it this way if SS was $200 on $1,000 in compensation.

The "waste" would be that a company must pay you $1,000 now for $800 in direct compensation after SS is applied. That $200 then goes to the bureaucracy to pay out a fraction of it back to you in benefits.

Now, without SS, the employer would pay $800 instead of $1,000 and you receive $800. The company takes the $200.00 and applies it somewhere else.

The employee receives $800 in direct compensation in either scenario.



This post was edited on 3/26 at 9:34 pm


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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


quote:

Couldn't someone make the argument that you would actually see no net affect on your purchase power if SS didn't exist?

For example, if SS didn't exist, employers would lower their compensation because they would no longer have to pay you that "extra" salary that allows you to adequately absorb the SS tax.

Put it this way if SS was $200 on $1,000 in compensation.

The "waste" would be that a company must pay you $1,000 now for $800 in direct compensation after SS is applied. That $200 then goes to the bureaucracy to pay out a fraction of it back to you in benefits.

Now, without SS, the employer would pay $800 instead of $1,000 and you receive $800. The company takes the $200.00 and applies it somewhere else.

The employee receives $800 in direct compensation in either scenario.


Your example works with employed workers.

The self employed have to pay both sides of SS and Medicare taxes (all 15%), an employed person only pays 7.5 and their employer pays the other 7.5. My gross income is determined by how much excellence I bring to the market, or how much I suck. But regardless of how much I make, the first 15 cents of every dollar goes to the Ponzi.






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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6566 posts

re: If I wasn't FORCED to contribute


quote:

But regardless of how much I make, the first 15 cents of every dollar goes to the Ponzi.


That is on the first $113,700 in earnings for 2013 for a maximum of $17,055. That might cover your health insurance but certainly not the rest of the laundry list you posted.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


So you're telling me a 30 year old healthy male is going to pay approximately $1400/month for an HSA eligible health plan?

YOU HAVE NO IDEA WHAT THE frick YOU'RE TALKING ABOUT.






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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6566 posts

re: If I wasn't FORCED to contribute


quote:

YOU HAVE NO IDEA WHAT THE frick YOU'RE TALKING ABOUT.

That would be typical for a married man with a family, perhaps a little on the high side. But the rest of my point is spot on. And you don't need to shout, a-hole.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


No it's not spot on, it's way off. Since I've brokered every single one of the products on my "laundry list" at one time or another, I'm confident in my estimations of the costs. Even if I was figuring for a family, which I wasn't, $1400.00/month for a high deductible HSA is ubsurd for a couple in their early 30s.





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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10601 posts
 Online 

re: If I wasn't FORCED to contribute


quote:

But regardless of how much I make, the first 15 cents of every dollar goes to the Ponzi.


No it does not. There's a cap on how much SS you pay.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


quote:

No it does not. There's a cap on how much SS you pay.



Yes, you are correct here, for 2012 the cap on Self Employment income subject to SS & Medicare tax is $110,100 @ 13.3%, in 2013 it's $113,700 @ 15.3%. I misspoke, I meant to say the first 15 cents of every dollar up to the $110,000-$113,700 threshold.






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Grouper Picatta
New Orleans Saints Fan
Bradenton,FL
Member since Mar 2013
462 posts

re: If I wasn't FORCED to contribute


I am with you. I am getting ready to stroke a fat check to the Govt on Friday. Along with another one for estimated taxes due on the same fricking day. Then you have exactly two months to stroke another estimated check.Where the hell is my Govt Cheese and Escalade at.





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HailToTheChiz
Auburn Fan
Behold, SKYWHALE!
Member since Aug 2010
7293 posts

re: If I wasn't FORCED to contribute


1400/month is nuts





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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4701 posts

re: If I wasn't FORCED to contribute


quote:

To the PONZI scheme known as Social Security in the form of Self Employment taxes, this is what I could have bought instead:


whats worse is most people don't realize their employer pays this and in effect is taking that out of your available pool of money....








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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11986 posts

re: If I wasn't FORCED to contribute


quote:

1400/month is nuts


For a High deductible HSA, I don't even think it would be underwritten, because for it to cost that much, you'd have to have some pretty serious health issues, in which case you'd either be un-insurable or you'd qualify for a plan that greatly reduces the risk to the insurance company (like a bare bones, 60/40 coinsurance, no prescription, no covered wellness screenings, HMO.)






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