"Americans pay many types of taxes
One of the biggest misconceptions about the U.S. tax code is that a large portion of Americans do not pay federal taxes.
Although it is true that the bottom 40 percent of income earners pay no individual income tax, they face payroll taxes if they are working.
In fact, about 90 percent of American taxpayers pay more in payroll taxes than in individual income taxes.
Payroll taxes, which help to finance Social Security, Medicare, and unemployment benefits, are the second largest source of federal revenue, and make up about one-third of total receipts annually. Payroll taxes are deducted from workers’ paychecks through a line item called FICA, which stands for the Federal Insurance Contributions Act."
No comments:
Post a Comment