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Eight in Ten U.S. Households Pay Social Security and Medicare Taxes
While relatively few low-income people pay federal income tax, a large and growing share owe Social Security and Medicare payroll taxes, according to new estimates by the Tax Policy Center. As a result, while about 43 percent of all households will pay no federal income tax this year, only 14 percent will pay neither income nor payroll tax. Once household income reaches $100,000, just about everyone pays both. But the story is more complex for those at the lower end of the economic food chain. Despite the oversimplified and inaccurate claims of some commentators, most low- and moderate-income households do pay Social Security and Medicare taxes, and the vast majority pay more in payroll tax than in income tax. Read more.
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