True, but at least in theory, the FICA (payroll) taxes fund programs that directly benefit the employee: medicare, social security, and unemployment benefits. T

True, but at least in theory, the FICA (payroll) taxes fund programs that directly benefit the employee: medicare, social security, and unemployment benefits. The reason these appear more regressive than income taxes is due to how Social Security pays out an amount proportional to your contributions, while also having a cap on the max you can receive and be taxed for.