Legal Question in Social Security Law in Maryland

Re: Possible tax fraud?

Social Security and Medicare taxes are assessed on wages, salary, or a self-employed person's income from a business. WHile it might seem as though the stock trader is running a business, the government sees a difference between what he is doing and income derived from work. If any of us invest in stocks or bonds, we will pay income taxes at some point, unless we lose money, but we won't be assessed social security or medicare taxes on the investment income. If his investments start losing, in a recession for instance, the investor might wish that he had some social saeacurity retirement income to rely on. On that he will be out in the cold.