Quote:
Originally Posted by roosterk0031
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That is Federal INCOME tax. Pretty much everyone above the poverty line is paying Federal taxes in the form of payroll taxes. The only way someone is paying no Federal taxes is if their income tax refundable credits exceed their total payroll tax withholding.
Current payroll rates are:
Social Security = 12.4% on income from $0 - $132,900 / 0% above $132,900
Medicare = 2.9% on income from $0-$200,000 / 3.8% above $200,000
Social Security and Medicare only apply to wage income. Retirement contributions, medical contributions, capital gains, distributions, and dividends are exempt.