Why did they lower the 2011 SS tax rate?

munchkinmunchkin Posts: 2,909Registered Users Curl Connoisseur
Tax rate for SS for employees in 2011 is going from 6.2% to 4.2%. What I don't understand is haven't we been hearing for years that Social Security is going to be broke by such and such a time? Is there any logic to all of this?
3b/c

Comments

  • theliothelio Posts: 5,374Registered Users
    When it comes to the govert, is anything ever done with logic??
  • jeepcurlygurljeepcurlygurl Posts: 20,729Registered Users, Curl Ambassador Curl Virtuoso
    It's a mystery to me. But it's ok with me as far as my paycheck goes. It makes up for the large raise in federal withholding. I even make a few extra bucks a pay now.
    --I'm located in Western PA.   --I found NC in late 2004, CG since February 2005, joined the forums in May 2005, started going grey in late 2005.   --My hair is 3B with some 3A, currently at mid back length when dry,  texture-medium/fine, porosity-top is low, middle is medium, ends are porous, elasticity-normal.   --My long time favorite products are Suave & VO5 conditioners, LA Looks Sport Gel, coconut oil, honey, vinegar.   
    --My CG and grey hair progress -  
    http://www.naturallycurly.com/curltalk/going-gray/179328-jeepys-grey-hair-progress.html   
    --My article at NaturallyCurly about going grey - 
    https://www.naturallycurly.com/curlreading/color/how-i-went-completely-gray-and-loved-it
  • roseannadanaroseannadana Posts: 5,633Registered Users Curl Connoisseur
    It replaces the Making Work Pay Tax Credit. And I agree that it is not wise to continue to pass debt on to the next generations but it was part of the budget compromise between dems and repubs.

    Payroll Tax Cut and Social Security Benefits - The Finance Buff

    I was born to be a pessimist. My blood type is B Negative.
  • jeepcurlygurljeepcurlygurl Posts: 20,729Registered Users, Curl Ambassador Curl Virtuoso
    I think the Making Work Pay credit has been extended and is also available for the 2010 tax year. At least that's what it said at IRS.gov when I was printing out tax forms for work.
    --I'm located in Western PA.   --I found NC in late 2004, CG since February 2005, joined the forums in May 2005, started going grey in late 2005.   --My hair is 3B with some 3A, currently at mid back length when dry,  texture-medium/fine, porosity-top is low, middle is medium, ends are porous, elasticity-normal.   --My long time favorite products are Suave & VO5 conditioners, LA Looks Sport Gel, coconut oil, honey, vinegar.   
    --My CG and grey hair progress -  
    http://www.naturallycurly.com/curltalk/going-gray/179328-jeepys-grey-hair-progress.html   
    --My article at NaturallyCurly about going grey - 
    https://www.naturallycurly.com/curlreading/color/how-i-went-completely-gray-and-loved-it
  • munchkinmunchkin Posts: 2,909Registered Users Curl Connoisseur
    I just hope it doesn't come back to haunt us. I can just hear it all now "why did we ever lower the tax rate in 2011, SS is going broke!" Maybe I better retire soon while there is still some money there.
    3b/c
  • munchkinmunchkin Posts: 2,909Registered Users Curl Connoisseur
    jeep, yes, it's nice to have extra in the paycheck, but with the increase in premiums for medical, I think I am still going to bring home less.
    3b/c

Leave a Comment

BoldItalicStrikethroughOrdered listUnordered list
Emoji
Image
Align leftAlign centerAlign rightToggle HTML viewToggle full pageToggle lights
Drop image/file