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Read previous threads, we already discussed those issues, including the fact that the rich, dont usually collect on either one of those.
Point being, that it becomes a smaller percentage of their total tax liability, since they're also not charged over a certain level, I believe it's around $93K.
Point being, that it becomes a smaller percentage of their total tax liability, since they're also not charged over a certain level, I believe it's around $93K.
I understand that overall certain level they stop paying, thats because they usually stop collecting.
Thus, they pay a SMALLER percentage of their incomes in tax over someone who DOES pay it. Progressively smaller.
No, not it doesnt.. because they still pay a higher income tax. Unless your going to argue that the SS tax is over 5%-7%.. which it isnt.. (difference between what someone poorer pays in income taxes (28%), vs someone richer (33%-35%))
I understand that overall certain level they stop paying, thats because they usually stop collecting.
Taxes and benefits have nothing to do with each other in this context. In 2008, those in covered positions will see SS payroll taxes deducted on the first $102,000 of covered income. There is no cap for the Medicare tax.
Meanwhile, in 2005 (the most recent year for which detail are available), some 148,000 tax filers with AGI above $500K collected approximately $3.4 billion worth of Social Security benefits...an average of a little over $23K apiece.
No, not it doesnt.. because they still pay a higher income tax. Unless your going to argue that the SS tax is over 5%-7%.. which it isnt.. (difference between what someone poorer pays in income taxes (28%), vs someone richer (33%-35%))
The Social Security tax is approximately 15% of your income. If you're self-employed, that's what you pay, because your employer...well, actually your employer IS paying the other half, since you're your own employer.
No, not it doesnt.. because they still pay a higher income tax. Unless your going to argue that the SS tax is over 5%-7%.. which it isnt.. (difference between what someone poorer pays in income taxes (28%), vs someone richer (33%-35%))
CBO: Effective tax burden, Social Insurance Taxes, 2005...
Poorest 20% ... 8.3%
Next Poorest ... 9.2%
Middle 20% ... 9.5%
Next Richest ... 9.7%
Richest 20% ... 6.0%
Taxes and benefits have nothing to do with each other in this context. In 2008, those in covered positions will see SS payroll taxes deducted on the first $102,000 of covered income. There is no cap for the Medicare tax.
Meanwhile, in 2005 (the most recent year for which detail are available), some 148,000 tax filers with AGI above $500K collected approximately $3.4 billion worth of Social Security benefits...an average of a little over $23K apiece.
1) The rich pay 12.4% to the limit of $102,000 = $12,648 taxes paid
2) The rich pay 2.9% on all income (lets assume $500K per your example) = $14,500, so each individual who makes over $500,000 pays at least $27,148 a year
3) $27,148 * 148,000 people over $500,000 income = $4,017,904,000 paid into Social Security
According to this math, the rich pay $4,017,904,000 into social security and collect $3,400,000,000 out, meaning the rich people pay over $617,904,000 extra into Social Security, and they are being greedy?
Note, this total is even more then that because some people make over $500,000 a year, and pay 2.9% of their income in addition to the total above.
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