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Payroll taxes are dedicated to pay for Medicare and Social Security programs. The amount you get in old age is directly proportional to how much you paid in (wi
by sgerenser 3y ago
Payroll taxes are dedicated to pay for Medicare and Social Security programs. The amount you get in old age is directly proportional to how much you paid in (with a formula that favors lower earners via “bend points”), so its disingenuous to just lump it all in with regular federal income taxes.
- dragonwriter 3y ago> Payroll taxes are dedicated to pay for Medicare and Social Security programs. Yes, and doing that as a dedicated levy on labor rather than general revenue is a policy choice. It doesn't somehow not count as a tax. > The amount you get in old age is directly proportional to how much you paid in No, its not. Especially not for Medicare.
- sgerenser 3y agoYes, sure, for both the benefits are weighted more towards lower-income earners (in other words, they get back much more, on average, than they paid in). I don’t know how that supports the thesis that those with lower income are overtaxed compared to those with higher incomes.