View Single Post
Old 05-17-2019, 01:22 PM   #64 (permalink)
Master EcoModder
Join Date: May 2009
Location: PDX
Posts: 929

Adventure Seeker - '04 Chevy Astro - Campervan
90 day: 17.3 mpg (US)

Dieselgate - '14 VW Jetta Sportwagen TDI
90 day: 38.24 mpg (US)
Thanks: 24
Thanked 457 Times in 318 Posts
Originally Posted by roosterk0031 View Post

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.
  Reply With Quote
The Following User Says Thank You to JSH For This Useful Post:
Xist (05-18-2019)