Re:Top 20% pay 95% of taxes
by mikeash on Friday October 27, 2017 @10:27AM
(#15568622)
> I dunno about you, but income taxes take the biggest bite out of my ass.
If that's true, it's because you're in the top 20%. The average person pays far more in payroll tax than income tax, not to mention other taxes. Remember, payroll tax is 15.3% starting from the first dollar of income. There are no deductions like there are for income tax. And payroll tax goes down to 2.9% on earnings above $127,200/year.
The median wage in the US is around $45,000/year. A single person making that much money with no dependents and no special deductions will pay about $4,700/year in federal income tax and about $7,000/year in payroll taxes. Dependents and other deductions will cut the income tax amount but will not touch the payroll tax.
If that's true, it's because you're in the top 20%. The average person pays far more in payroll tax than income tax, not to mention other taxes. Remember, payroll tax is 15.3% starting from the first dollar of income. There are no deductions like there are for income tax. And payroll tax goes down to 2.9% on earnings above $127,200/year.
The median wage in the US is around $45,000/year. A single person making that much money with no dependents and no special deductions will pay about $4,700/year in federal income tax and about $7,000/year in payroll taxes. Dependents and other deductions will cut the income tax amount but will not touch the payroll tax.