He says he pays taxes but is not eligible for Social Security. I don't know how it works there, but a person in the U.S. working informally could, if they chose to, pay their own Social Security when they filed their income tax. A W2 or 1099 is not required to report income. Most people who have informal income do not want to report it or pay taxes on it, but if it means having Social Security and Medicare benefits some day, and they're not investing for retirement otherwise, they would be wise to report it for the sake of their old age.
Can a person in Mexico who has only informal income report and pay taxes on that income, and pay into Social Security?
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Such as it is, all over the world
Posted by JohnMcGrew@...
10th Oct
Just
In
In
Informal economy
Posted by littlepitcher
12th Oct
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He says he pays taxes
Posted by AlanLaRue
10th Oct
0
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Social security distinction
Thanks for sharing AlanLaRue. There is an important distinction between the social security systems of the U.S. and Mexico, namely that in Mexico "social security" refers specifically to health care rather than a state-sponsored pension system. Thanks for pointing this out!
Posted by LaurenVillagran
10th Oct
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Thank you
Thanks for the explanation.
Posted by AlanLaRue
12th Oct
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Mexican labor reform
G'morning. Yes it is over due, but it must be done carefully with an eye to the future, and possible unfavorable side cuts, or pitfalls by certain types of employers. Also it must be made clear to all the benifits of their SS system.
In our operations in mining and explorations, we pay over scale, 400 pesos daily, plus full room and board, and of course, SS health benifits.
We do not pay overtime, but they only work a max no of hours over 8, 'if' the situation demands it, and it rarely does for more than a few days a month.. In the end they earn more under our system which is a constant, predictable alary. Incidently, it is in our contractural agreement as specified by present law.
Don Jose de La Mancha
In our operations in mining and explorations, we pay over scale, 400 pesos daily, plus full room and board, and of course, SS health benifits.
We do not pay overtime, but they only work a max no of hours over 8, 'if' the situation demands it, and it rarely does for more than a few days a month.. In the end they earn more under our system which is a constant, predictable alary. Incidently, it is in our contractural agreement as specified by present law.
Don Jose de La Mancha
Posted by Don Jose de La Mancha
10th Oct
+3
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Such as it is, all over the world
As governments continue to grow, consume (or redistribute) and regulate greater percentages of nation's income, so will the desire to evade those systems, either out of greed or just plain survival.
Personally, I believe that there is an absolute finite percentage that governments can extract, and most of the world's governments have long since passed that limit.
Personally, I believe that there is an absolute finite percentage that governments can extract, and most of the world's governments have long since passed that limit.
Posted by JohnMcGrew@...
10th Oct
+2
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Informal economy
Informal economy is defined as working without an employment contract? That describes every employment-at-will state and company in the U.S.A. This is just another reason I worked as a US street vendor for a few years. The IRS will bill you for self-employment Social Security tax if you file a return so you do get credited for that work time. Since our economy rapidly is degrading into a two-tier Third World model, secure employment is disappearing, and pay declining, Americans may as well use the street model/home-based business model to be loyal to our bottom lines. In America, free enterprise is regulated most at the bottom of the pyramid-those at the top purchase exemptions or the regulators themselves. We need to resist excessive regulation of small startups or zoning exclusions of home-based enterprise.
Posted by littlepitcher
12th Oct