Mikeoxenormous
Diamond Member
So why arent we doing the same with income tax? Why do panhandlers pay no income tax?As to income tax, because that’s the way the law is written. There is I minimum amount for wages before income taxes kick in. But you probably knew that.
As to Social Security tax, this is false. Bassically all wage earners earning below the high end cap pay the same percentage on all wages. If your wages are $15,000 a year the rate is 6.2%. If your wages are $150,000 a year the rate is 6.2%.
However the working poor pay a higher percentage of income into SS than does someone making say $500,000. Do the math yourself. 6.2% of $15000 compared to someone whose wages are $500,000 but pay SS taxes only on the first $160k. The low wage earner is paying 6.2% of total wages. The high wage earner is paying 1.98% of total wages.
WW