Saturday, April 13, 2013

Here's an interesting chart...

...that shows the share of federal revenue from different tax sources. (Look at that green line.)
From the Wikipedia page, "Federal Insurance Contributions Act tax" (my emphasis):

The Center on Budget and Policy Priorities states that three-quarters of taxpayers pay more in payroll taxes than they do in income taxes. The FICA tax is considered a regressive tax on income with no standard deduction or personal exemption deduction. It was imposed for the years 2009, 2010 and 2011 on only the first $106,800 of gross wages and increased to $110,100 in 2012 and $113,700 in 2013. The tax is not imposed on investment income such as interest and dividends.

Rather than all this talk of means-testing Social Security and Medicare, why not just lift that cap a little?

No comments: