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From: ask@cbrma.UUCP (A.S.Kamlet)
Newsgroups: net.taxes,net.legal
Subject: Re: Social Security (how to get out)
Message-ID: <5239@cbrma.UUCP>
Date: Tue, 7-Oct-86 00:24:53 EDT
Article-I.D.: cbrma.5239
Posted: Tue Oct  7 00:24:53 1986
Date-Received: Thu, 9-Oct-86 01:36:43 EDT
References: <126@raster.UUCP> <6152@alice.uUCp> <598@chinet.UUCP>
Reply-To: ask@cbrma.UUCP (A.S.Kamlet(Art))
Organization: AT&T Bell Laboratories
Lines: 34
Xref: watmath net.taxes:1357 net.legal:5306

In article <598@chinet.UUCP> magik@chinet.UUCP (Ben Liberman) writes:
>In article <6152@alice.uUCp> ark@alice.UucP (Andrew Koenig) writes:
>>> Like many other people, I believe that by the time I am old enough
>>> to collect it, Social Security will be long gone. 
>>>  
>>> IS THERE ANY WAY OUT???
>>
>>No.
>
>Yes, sometimes.
>
>If you sell your services as a consultant, you are not paid a salery and no
>taxes are withheld.  You bill the company for services and are paid in full.
>If you have incorporated as an 'S' corporation, the corporate profits can be
>paid to you (the sole shareholder) without incuring any corporate income tax
>This income is considered to be a dividend, not a salery.

In general, SS taxes are only on wages.  So, if you can earn money
from sources other than wages, you won't have to pay SS taxes.

Examples, (in addition to the consulting suggestion above) are
to put all your money in the stock market, and earn enough in dividends,
capital gains, etc so you need not work for a living.  (The Rockefellers
had no trouble doing that.)   Or, you could invest a couple of dollars
in the lottery, and win a few million dollars.  (Or pay a visit to Las Vegas
and win big..  Very Big)   

My own opinion on what will happen to SS taxes, is that when it becomes
a really big issue, and so far it has been a loud and annoying one, but
not big enough to do anything drastic, then "they" will hide the SS tax by
moving some of it to income taxes, where no one can identify how much
will really be paid to SS.
-- 
Art Kamlet   AT&T Bell Laboratories  Columbus  {cbosgd | ihnp4}!cbrma!ask