I have been a Fair Tax supporter for years but I recently ran into a person with a question I could not answer. His question was "if income is not reported anymore and the worker is not contributing to social security how is the amount of an individual's social security allotment going to be figured?"
I admit I was stumped. First time anyone ever asked that. Can anyone explain it? Thanks.
If I can remember what my mom shared, as her and my dad owned a small business, they would send in a form of the income earned to the Social Security office (I think). So income is still to some degree being reported it is just not the bases for being TAXED anymore.
Looking forward to what others have to share.
Thanks for the response. Well that would throw a kink into my argument since I already told this person that one of the benefits of the Fair Tax is not having to report income. Hmmmm.
We wouldn't be reporting it to the IRS which is a biggie...
Since we all may be getting Social Security at some point there has to be a bases on how much we will get. The EASE of this for employers and the reality that it is not the basis for how much we are taxed or manipulated is a biggie!
We as the individual don't report it, our employer does. GOOOooo FairTax!