To: Red Jones
another aspect of this whole equation is the tax burden. Even people working at minimum wage pay a significant payroll tax. But it seems that the most heavily taxed people draw a paycheck at between 70,000 and 87,000 a year. These people pay the payroll tax at its' full rate, then they pay income tax on the same income. They're still double-taxed unlike dividend income earners. Paychecks above 87 grand don't pay payroll tax on the amount above 87 grand. So, their marginal tax rate goes down quickly.
To: Red Jones
But it seems that the most heavily taxed people draw a paycheck at between 70,000 and 87,000 a year. These people pay the payroll tax at its' full rate, then they pay income tax on the same income. They're still double-taxed unlike dividend income earners. Paychecks above 87 grand don't pay payroll tax on the amount above 87 grand. So, their marginal tax rate goes down quickly. This is total crap. I suppose you are talking about the upper limit on income for the Social Security tax. That is NOT the income tax. If you want to talk apples, stick to apples.
34 posted on
02/04/2003 10:53:48 PM PST by
John Valentine
(Living in Seoul, and aware of the threat.)
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