Sunday, September 11, 2016

Payroll taxes becoming more expensive than income taxes

Payroll taxes, which fund Social Security and Medicare, is estimated to be more than income taxes in about 62.3% of households in America according to the Tax Policy Center.  According to them the less you make the more likely you are to be in this group, this is because a lot of upper and middle class people are getting tax breaks on households.  Therefore their income taxes are very low or even basically non existent, but with your pay checks from work both you and your employer are required to put money towards Social Security.  For example those who are in the middle class and make around $50,000 in income, will pay around $7,650 in taxes a year, and in this next year it is estimated that 44% of the country will end up with no household income tax, therefore their payroll tax being their only expense left

http://money.cnn.com/2016/09/06/pf/taxes/income-taxes-payroll-taxes/index.html?iid=SF_LN

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