Friday, February 21, 2014

IRS Self Employment Tax Misnomer

Trigger

While preparing my tax return for 2013, I could not help myself but to write this blog post.

If you are not sure what I am talking about, then check out following IRS documents:

What An Humbug!

This tax is anything but a self employment tax. It is the Social Security payroll tax (12.4%) plus Medicare tax (2.9%). So as a sole proprietor I have to pay both the employer and the employee portion of the Social Security payroll tax adding up to 12.4%.

Big Government Fools Its Citizens For Too Long A Time

It is outrageous that employees pay only half the Social Security payroll tax in the U.S. as well as in e.g. Germany. This is a great deception and a great fiction implemented by big government to fool its citizens.

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