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The equal exchange between employer and employee yet one is taxed. Why?

Posted on 11/24/25 at 7:53 am
Posted by Timeoday
Easter Island
Member since Aug 2020
17221 posts
Posted on 11/24/25 at 7:53 am
You provide your labor, idea, or other skill set to an employer who is willing to compensate you for such. In other words, your labor, idea, or other skill set has value that you compensate the employer with.

Think of it as counterbalance between employer and employee.

However, the value you compensate the employer with is not taxed. To me, it has always been the most unfair aspect of taxation. As a matter of fact, the employer can even write off your value as a cost while the value you receive from the employer is treated as a profit for tax purposes.

Why is it so one sided?
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
78811 posts
Posted on 11/24/25 at 7:56 am to
Employers get taxed on their profits and your salary is an expense.

They also get taxed on what they pay you. They have to pay unemployment taxes on their payroll as well as matching your SS/Medicare payments.
Posted by mmmmmbeeer
ATL
Member since Nov 2014
9643 posts
Posted on 11/24/25 at 7:56 am to
Communist
Posted by Gifman
Member since Jan 2021
16984 posts
Posted on 11/24/25 at 7:57 am to
Posted by jorconalx
alexandria
Member since Aug 2011
10520 posts
Posted on 11/24/25 at 8:00 am to
quote:

Why is it so one sided


I didn’t realize people could be this dumb. Have you ever heard of payroll tax, unemployment insurance, liability and property insurance? Employers are damn near faxed out of existence in a lot of small businesses
Posted by W2NOMO
Member since Jul 2025
1524 posts
Posted on 11/24/25 at 8:01 am to
You’ve never had employees on a payroll have you?
Posted by Ten Bears
Florida
Member since Oct 2018
4683 posts
Posted on 11/24/25 at 8:01 am to
quote:

However, the value you compensate the employer with is not taxed. To me, it has always been the most unfair aspect of taxation


Hmm…this might be the dumbest post of all time. Employers are taxed for fricking breathing.
Posted by dgnx6
Member since Feb 2006
85452 posts
Posted on 11/24/25 at 8:02 am to
Employers pay taxes on their employees.



Posted by Jax-Tiger
Vero Beach, FL
Member since Jan 2005
26817 posts
Posted on 11/24/25 at 8:03 am to
quote:

Why is it so one sided?Why is it so one sided?


What difference does it make?

The source is the same. The employer can pay the tax for you, or you can pay the tax yourself. It still comes out of YOUR pocket.

Do you think that if your employer paid more taxes, they would just eat the tax? They will either reduce your compensation or increase the price of the products that they sell and you buy. Either way, you will pay the tax.



This post was edited on 11/24/25 at 8:07 am
Posted by Timeoday
Easter Island
Member since Aug 2020
17221 posts
Posted on 11/24/25 at 8:11 am to
quote:

Employers get taxed on their profits and your salary is an expense.

They also get taxed on what they pay you. They have to pay unemployment taxes on their payroll as well as matching your SS/Medicare payments.




Employers are not taxed for compensating our labor. They are taxed when the company profits. Yet we are taxed for receiving compensation for providing an equal value to the employer.

What does their tax burden have to so with your labor? The payroll tax, including unemployment and matching SS/Medicare payments occurred long after the "income" tax was established.

Government saw opportunity to TAX and took it to the detriment of your labor provision. It is very unfair.

Tariffs will eliminate income tax soon.
Posted by tigeraddict
Baton Rouge
Member since Mar 2007
14355 posts
Posted on 11/24/25 at 8:11 am to
you pay 6.2% for SS and your employer pays an additional 6.2% as well

You pay 1.45% for Medicare and your employer pays an additional 1.45% on as well.

so the employer pays 7.65% on all on the check payroll, with no deductions (up to the high income SS tax level)

this is why if you are self employed you have to pay double for SS and Medicare.....15.3%

Also, the employer pays taxes on any profits said labor creates
Posted by Timeoday
Easter Island
Member since Aug 2020
17221 posts
Posted on 11/24/25 at 8:12 am to
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
464907 posts
Posted on 11/24/25 at 8:12 am to
quote:

Employers are not taxed for compensating our labor.


Are you ignorant of payroll taxes?

Posted by dickkellog
little rock
Member since Dec 2024
1771 posts
Posted on 11/24/25 at 8:12 am to
wow until this moment i'd given you the benefit of the doubt that you had a modicum of average intelligence that is no longer the case.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
464907 posts
Posted on 11/24/25 at 8:13 am to
quote:

wow until this moment i'd given you the benefit of the doubt that you had a modicum of average intelligence that is no longer the case.

I have suspected for a while he was a troll projecting the most ignorant MAGA stereotypes but after this thread I think he may be doing that sincerely
Posted by Timeoday
Easter Island
Member since Aug 2020
17221 posts
Posted on 11/24/25 at 8:15 am to
quote:

I didn’t realize people could be this dumb. Have you ever heard of payroll tax, unemployment insurance, liability and property insurance? Employers are damn near faxed out of existence in a lot of small businesses


Of course I have heard of the tax employers pay on a tax paid to the employee.

Posted by dnm3305
Member since Feb 2009
15803 posts
Posted on 11/24/25 at 8:16 am to
What if the employer is also an employee?

Get that beautiful quadruple tax. Tax the earner on income. Tax the employer on payroll tax. Tax the employer on worker’s comp. Tax the employer the income that employee brought into the business.

Every fricking month.
Posted by Jenstu
Member since May 2023
18 posts
Posted on 11/24/25 at 8:16 am to
employers pay payroll tax, it is called 941 Employer's Tax federal. Then L-1 state tax form, then FUTA unemployed insurance for the state at the end of the year. so maybe do a little more research before you speak other people's talking points
Posted by stelly1025
Lafayette
Member since May 2012
9857 posts
Posted on 11/24/25 at 8:20 am to
Posted by Timeoday
Easter Island
Member since Aug 2020
17221 posts
Posted on 11/24/25 at 8:20 am to
quote:

You’ve never had employees on a payroll have you?


I have paid more in payroll "tax" cost than almost all will earn in their lifetime. I completely understand the government mandated "costs" which all, to me, are considered taxes.

I just did not ever understand why the employee had to pay a tax on an equal exchange.= between employee and my company.
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