Of Course the Poor Don't Pay the Majority of Payroll Taxes (available in:
Manhattan)
Date: Apr 8, 2005 13:21:35 PM CST
The OP meant that, since the Social Security part of the payroll tax is capped at $90,000 (it was capped as low as 68,000 a few years ago, btw), that the poor pay a higher percentage of their income in payroll taxes than those who make over $90,000. This is true, but Social Security benefits are progressive, so lower income workers still get a better deal from Social Security than anyone else (of course, those who earn more than 90,000 don't get any higher benefits than those who make 90,000, since benefits are capped too).
Still, the rich pay more in payroll taxes than the poor, since the rich pay Social Security taxes on the full 90,000 as well as 2.9% Medicare taxes with no cap. Plus, the lowest-income workers in America pay essentially no Federal taxes as their Earned Income Tax Credit grants (a handout from the Government, which can be up to a few grand) more than offset the payroll taxes they pay in most cases.
The bottom line: The uppe
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