SCAM of 1935 The Social Security Act of 1935 is the most devious scam ever created! It is so incredibly unbelievable; I can hardly believe it and I can prove here and now. The Social Act of 1935 required employers and employees to “Contribute” equal rates of taxes.The employee “Contribution” is not tax deductible from the employee’s Federal Income Tax (FIT). The employer “Contribution” is deductible as a Business Wage Expense Deduction. IRS Publication 535 is an instruction to the employer “how to” “Pick the Employees’ pockets”. IRS Publication 535 (2004), Business Expenses http://www.irs.gov/publications/p535/ch06.html IRS QUOTE:6. Taxes...Employment Taxes: If you have employees, you must withhold various taxes from your employees' pay. Most employers must withhold their employees' share of social security and Medicare taxes along with state and federal income taxes. You may also need to pay certain employment taxes from your own funds. These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. You should treat the taxes you withhold from your employees' pay as wages on your tax return. You can deduct the employment taxes you must pay from your own funds as taxes. You pay your employee $18,000 a year. However, after you withhold various taxes, your employee receives $14,500. You also pay an additional $1,500 in employment taxes. You should deduct the full $18,000 as wages. You can deduct the $1,500 you pay from your own funds as taxes.UNQUOTE The “theft” is conducted in this manner. The employer confiscates $1377,.00-FICA from left pocket and $2123.00 right pocket from Joe Six Pack. Employer matches $1377.00 FIT taxes) from employee’s pocket. Employer matches the FICA “Contribution) Employer (assume corporation in the 35% nominal tax bracket) sends a report to the Social Security Administration (SSA) and sends $4877.00 to the Internal Revenue Service (IRS). Corporate Employer files tax return with IRS claiming the Wage Expense Deduction (that includes all the taxes plucked from the Employee’s pocket). IRS does the calculation:$18000.00 employee “taxes” & “Contributions” Plus the $1500.00 paid from corporation funds as taxes = Total of $19,500.00 35% of $19,500.00 is $6825.00 that is either refunded or is a reduction of the Corporate Tax Liability. 35% of the $500.00 FICA is $175.00 which means the employer only contributed $325.00 while the Employee contributed $500.00. And to add insult to injury, the employee pays FIT taxes on his $500.00 “Contribution”. The Social Security Act of 1935 states: Employee “Contributions” are matched with Employers.
And, that is just part of the scam. The next part of the “SCAM of 1935” is the most amazing phenomena I have ever seen. And, the one after that is incredible