Oh I thought we were talking about the rich, the people who are at the point of paying negative taxes. Like the comment directly next to yours goes further into.
The relevant metric is “proportionate” not “majority”. The working poor pay a much higher proportion of their earnings in taxes than the ultra rich.
For example, our social security system is funded by taxes on the first $184,500 of personal income. Every dollar you earn above that is exempted from social security tax. That’s a 12.4% regressive flat tax. That tax is not assessed against business income, only personal income.
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Don’t they pay like the majority of taxes in America?
No, in America the more money you make, the less your taxes become.
to a point, then you pay $0 and after that, you actually get taxpayer money in goverment contracts.
That’s not true. Taxes increase as you move up income brackets.
Oh I thought we were talking about the rich, the people who are at the point of paying negative taxes. Like the comment directly next to yours goes further into.
The relevant metric is “proportionate” not “majority”. The working poor pay a much higher proportion of their earnings in taxes than the ultra rich.
For example, our social security system is funded by taxes on the first $184,500 of personal income. Every dollar you earn above that is exempted from social security tax. That’s a 12.4% regressive flat tax. That tax is not assessed against business income, only personal income.
The working poor usually don’t pay federal taxes, and usually pay a -% if you include rebates or credits.
The middle class on the other hand gets screwed in taxes.
It would have to be both refunds and credits to get more back than you paid in.
Or just credits. A few years i paid -3% federal income tax because is the kids.