Barney
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- Oct 27, 2017
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Possibly. But many people, including economists, think that the employer's half is nothing other than a withholding from the employee's real wages, hardly any different from the other half that is itemized on his pay stub.
Yes, of course, the employer's half really does come out of the employee's pocket. I was addressing the claim of double taxation in a technical sense. "I paid taxes on my SS contributions, there for I should not pay taxes on my SS distributions." In a technical sense, the employee didn't pay taxes on the employer's SS contribution.
If you're paid $100, you pay income taxes only on that $100. You don't pay income taxes on the $6.20 the employer pays into SS for you. If you're self-employed, that $6.20 is deductible from your taxable income.
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