Uploaded by whitehouse on Dec 13, 2011
In this installment of the White House White Board, Brian Deese, the Deputy Director of the National Economic Council, explains why we can't wait to extend President Obama's payroll tax cut that will continue to benefit 160 million Americans.
Rightardia is happy to see the White Boards again. Austan Goolsbee is tough act to follow, but Brain Deese was up to the challenge.
The payroll tax is really the Federal Insurance Contributions Act (FICA) tax. It funds America's retirees because it pays for both Social Security and Medicare. In the long term this is not a desirable way to cut taxes because it will reduce a beneficiary's Social Security check when they retire.
The real problem with FICA is the cap which is $106,800. The cap lets affluent Americans off of the tax hook for any income above that amount, making Social Security a very regressive tax.
Public Domain.
The payroll tax is really the Federal Insurance Contributions Act (FICA) tax. It funds America's retirees because it pays for both Social Security and Medicare. In the long term this is not a desirable way to cut taxes because it will reduce a beneficiary's Social Security check when they retire.
The real problem with FICA is the cap which is $106,800. The cap lets affluent Americans off of the tax hook for any income above that amount, making Social Security a very regressive tax.
Public Domain.
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