It’s Fix the Tax Code Friday!
Over the last few days, there has been a lot of focus on Obama’s nominee for Secretary of the Treasury, Timothy Geithner, and his tax woes. Geithner’s tax problems still from the failure to pay self-employment taxes during his stint at the IMF. Critics on both sides have seized this opportunity to pounce on the self-employment tax (the FICA equivalent for those not subject to withholding) as potentially confusing and burdensome to the self-employed. Honest mistake or deliberate action – Geither’s omission has raised the profile of self-employment taxes.
So today’s Fix the Tax Code Friday question is:
Should self-employed persons be allowed to opt out of paying self employment tax (and thus, collecting Social Security benefits and the like)?