Do teachers pay fed tax

Answer 1

Yes. Arizona teachers must be covered by Social Security to participate in the Arizona State Retirement System. see: http://www.azcharters.org/Conference_Presentations/Presentations/Monday/Breakout%20Block%204%20%284.00%20-%205.00%29/Arizona%20State%20Retirement%20System%20Programs,%20Mark%20Muraoka/Defined_Benefit_Plan.pdf

Answer 2

United States public school teachers do not pay the larger portion of Income tax which is the Social Security tax.

You see government employees are the only ones that are allowed to opt out of the Social Security tax. Legally anyone can opt out, but they do not tell you that or allow you to change it after you start paying.

If you actually read the tax laws you would see that any money a person make's by expending their time in exchange for money, food, housing, or whatever is not taxable. Income is profit made from the sale of something or interest made off of anything. It is not an exchange of an agreed equal value.

This question is about taxes and the truth should be told. Don't just believe, read the law, not IRS bulletins. The IRS does not make law, nor does it have to explain the law to you.

First the response above addresses the social security tax as if it is the income tax. (question: is it separate for the non-government employee? Are you allowed to fill out a W4, without Social Security, or not to fill one out when being hired privately?) It is not, and is not connected to it in any way, including it being based on a different definition of what is income and when it is applied. Some (ALL) STATE government employees (teachers mainly) are allowed to participate in a program instead of SS (which is paid by FICA contributions). The contribution itself is generally the same Teachers retirement is mainly funded by the School system (property taxes) (and sometimes more). The benefits may differ, albeit not substantially, but it is the handling of the funds, the (actual investments same as IRA for the average American unlike Social Security which is in no way an investment for the individual) investment manager if you will, that is actually different. These plans have been disappearing for many years. Federal employees used to have a similar plan, but that was closed to new contributants in 1984 (now their retirement is based on salary much in the same way as the military, ie: a government employee that retired after twenty years in 2006 receives $150,000.00 per year, they were an IRS auditor.)

The rest of the above is not only nonsense, but dangerously so, as penalties and laws have been made to assure no one is foolish enough to believe it for long! It repeats some things that are specified as "tax protester" arguments... (This is what is done to try to hide the turth) are not only wrong but absurdly so.... (please name the cases that directly address personal employment without having a W4 filed) and have been addressed by so many courts (incorrect statement, Courts have seen cases on interest and capital gains money. The courts that have seen personal employment have found the federal tax on income to not hold merit) , so many times that even doing so is considered punishable by severe fines and even jail. As the responder suggests: "...anyone who reads...." will know. If you go to the IRS site you will not see the laws, but if you read the tax laws you will see what is and isn't listed as income.

As a start:

http://www.irs.gov/taxpros/article/0,,id=159932,00.html