Income tax and Social Security tax

[David S]

When you compute your federal income taxes you are allowed to deduct state and local income tax (or state and local sales tax), plus real estate taxes, plus personal property tax. But you cannot deduct the taxes you paid to Social Security. Doesn't that make the income tax a tax on a tax? In other words you pay income tax on income you never received because it was already taken in SS taxes.

[A18]

No. Part of the rate is in payroll taxes, part is in income tax.

All those deductions should be repealed.

[Richard]

Payroll tax is a convenient term to mask the inconvenient "income tax."  So yes.

[Bono]

IF you are a federal worker, than yes.

[Fmr. Gov. NickG]

Yes, but the problem is not with the income tax but with the payroll tax.  We should just pay for social security out of the income tax...then we could stop hearing these claims about the "trust fund" going "bankrupt.

[○∙◄☻¥tπ[╪AV┼cVê└]

You don't pay income tax on your SS taxes. Yawn.

[J. J.]

You don't pay income tax on your SS taxes. Yawn.

That's a nonsensical statement. 

You pay taxes on the contribution you make to the Social Security System, that is part of your income.  You cannot say, "I made $50,000.00 and the government took out $5,000 for Social Security.  I only have to pay taxes on $45,000.00." 

In theory, however, SS is a "voluntary contribution," so technically it isn't a tax.

[David S]

You don't pay income tax on your SS taxes. Yawn.

That's a nonsensical statement. 

You pay taxes on the contribution you make to the Social Security System, that is part of your income.  You cannot say, "I made $50,000.00 and the government took out $5,000 for Social Security.  I only have to pay taxes on $45,000.00." 

In theory, however, SS is a "voluntary contribution," so technically it isn't a tax.

It is a tax and you could go to jail for not paying it.

[A18]

There is no point to the deductions except to make calculating your rate more confusing. To raise the same amount of revenue, you'll just have to raise the rate.

[David S]

There is no point to the deductions except to make calculating your rate more confusing. To raise the same amount of revenue, you'll just have to raise the rate.

The point is they are taxing you on money you never got.

[A18]

There is no point to the deductions except to make calculating your rate more confusing. To raise the same amount of revenue, you'll just have to raise the rate.

The point is they are taxing you on money you never got.

yawn. It makes no difference. They can tax you a higher rate on less of your income, or they can tax you a lower rate on the whole thing.

Only difference is the latter makes it a lot easier to see how much you're paying.