As it becomes apparent that the Democrats will have essentially total control of the federal government (with the MSM serving as the Democratic Party’s unofficial Joseph Goebbels Propaganda Bureau), there’s bleak news in the coming changes from D.C.
But when I’m served lemons, I try to make some lemonade. It wasn’t easy, but I brewed up a tasty glassful of this beverage.
One new tax that Biden et al plan to impose is a net 12.4% “Social Security tax” on earned income above $400,000. In truth, it’s just a tax on high wages, with ZERO benefit to those rich folks who pay it. They will not get one penny more in SS benefits.
IMPORTANT SIDE NOTE: We already have this policy for higher end wage earners. Under current law, the employee and employer each pay a 6.2% SS pension tax (12.4% for the self employed) on the worker’s wages for SS pensions. In 2021 this tax will be levied on the first $142,800 of earnings.
But the PAYOUT formula caps the income used in the SS pension calculation about $72,000. What this means is that NOW if a person makes $142,800, his or her pension will be calculated on just the first $72,000 of income. The higher paid worker will not get one dime extra for the 6.2%/12.4% payments above $72,000.
For those making more than $72,000, it’s not “old age insurance.” Its simply wage confiscation. Not one high wage earner in a hundred understands this scam. Here’s an older article I wrote — detailing this ripoff.
As usual, I digress. Yes, in principle, I abhor Biden’s new SS tax on folks earning more than $400K. They will not get any benefit at all from this tax, yet they THINK they are just paying more into their personal SS retirement fund. They are not.
But here’s the lemonade. Consider WHO will be paying this “soak the rich” tax. That’s the part of this lemon libation that is both tasty and refreshing.
Start with all the athletes in the NFL, NBA and MLB. This overwhelmingly progressive cabal and its members have strongly supported Democrat candidates and left wing policies. I LOVE this “pile on” Biden policy designed to soak our airhead, jughead jocks.
Then there’s the “artists.” Movie stars, national TV talk show hosts, stage performers, rock stars, rap reprobates, etc. Again, OVERWHELMINGLY they supported Biden and worship his one party control of our nation. Perhaps we’ll soon see some REAL tears from these professional actors.
Finally there are all those “woke” CEO’s who have lined up in support of crony capitalism and softcore socialism. Stick it to ’em!
Yes, some rich wage earners aren’t progressive. I’m sorry for them. Maybe they should have spoken out more forcefully before the election. Most just kept their heads down.
But most top earners are firmly on the left. Every time I think of this new tax, I can’t stop grinning like the fabled Cheshire cat.
In my quest for a tasty beverage, maybe I’m just grasping at straws. But hey, it’s a Brave New World. We need to learn to make the most of it.