[justlurking]

Almost everyone who works pays payroll taxes, which are a flat 15.3% of income. There is no exemption for low earners, only for high earners. Those who earn above about 120,000 don’t have to pay any more above that level.

Slight amendment: 12.4% of the payroll tax stops at the ceiling for FICA, which is $110,100 this year. However, the rate is actually 8.4% this year, due to the temporary reduction in FICA taxes.

The remaining 3.9% is for Medicare, which has no upper limit, at least on wage income.

Neither tax is imposed on unearned income like interest, dividends, and capital gains.

[juno67]

You’re right, of course. A bit of sloppy writing and thinking on my part.