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To: leadpenny
Because of the CAP on FICA contributions, someone below the CAP is likely to pay a higher Federal (FICA and Income) Tax rate than someone who makes an amount way above the CAP.

While I do agree with you, you keep forgetting a very vital portion of this equation.

By law, anyone that hits the CAP, is not allowed to collect any of their FICA investments.

And, as I have pointed out, this is a retirement fund. Even someone as rich as I am ($60,000 per year) is paying 54% of my monthly wages.

Having lived on both sides of this issue in my life, I remember complaining about the $1,000 per year I was paying, while serving on active duty in the Army.

However, after all the tax credits, the goverment ended up sending me a refund larger than the amount I contribited that year in taxes.

Today - I wish!

89 posted on 10/24/2002 7:22:23 AM PDT by Hunble
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To: Hunble
By law, anyone that hits the CAP, is not allowed to collect any of their FICA investments.

Distractor! That not about who pays the highest rate.

You make 60G. Don't know what your AGI is but I'll bet you pay a higher Federal Rate (Income and FICA) than the any Major League Baseball player.

91 posted on 10/24/2002 7:31:42 AM PDT by leadpenny
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