Tax Guru-Ker$tetter Letter

Saturday, April 28, 2007

SS Base Increases

Anyone who understands the future of the current Ponzi Scheme setup for Social Security knows that the only way it can continue to survive is to increase the tax rate and the amount of income subject to the tax, which is FICA for W-2 wage slaves and Self Employment tax for those of us in control of our own income.

My long running prediction that the ceiling on the income subject to the tax will be removed completely is still on target and should be implemented shortly after the Dems take control of the White House. In the meantime, Spidell just sent out an email with the following scheduled increases in the taxable income base according to the SSA's projections.

2008: $102,300
2009: $106,800
2010: $111,600
2011: $116,400
2012: $121,500
2013: $126,300
2014: $131,700
2015: $136,800
2016: $141,900

As I have been explaining for decades, there are very legitimate ways to reduce or possibly eliminate the requirement to pay any Social Security or Medicare tax by the proper use of other legal entities, such as LLCs and corporations. Any good tax pro should be able to help clients set things up to accomplish this.

Labels: SSA

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 4/28/2007 11:50:00 AM Send this post: