FICA's our most regessive tax.
Employers’ FICA taxes are equivalent to a federal sales tax.
Currently Wage earners directly pay for FICA 7.65% of their wages. Employers also pay an equal FICA payment based upon their payrolls. Enterprises generally pass all of their expenses onto their customers. Employers’ 7.65% of their payrolls effectively behave similar to a federal sales tax.
[If labors’ portion of aggregate prices is 1/3 of aggregate prices, employers’ FICA taxes behave as a federal sales tax exceeding 2.6%; if its portion is ½, employers’ FICA behaves as a sales tax of almost 4%. (Refer to the following message entitled “Current federal sales tax rate” for further explanation).
Currently wage earning families FICA expenses are directly 7.65% of their wages and indirectly what’s effectively the federal sales tax. If they spend their entire incomes derived from wages, they are paying somewhere between 10.25% and 11.66% for FICA.
(Regardless of income sources, (due to employers’ FICA all purchasers of U.S. products pay between 2.6% to 4% for the equivalent of a federal sales tax).]
Because FICA is directly levied upon employers’ payrolls, (unlike other sales taxes), FICA levied upon enterprises increases in step with their payrolls, thus discourages hiring and is a more specific drag upon aggregate wages and the economy.
Respectfully, Supposn
Employers’ FICA taxes are equivalent to a federal sales tax.
Currently Wage earners directly pay for FICA 7.65% of their wages. Employers also pay an equal FICA payment based upon their payrolls. Enterprises generally pass all of their expenses onto their customers. Employers’ 7.65% of their payrolls effectively behave similar to a federal sales tax.
[If labors’ portion of aggregate prices is 1/3 of aggregate prices, employers’ FICA taxes behave as a federal sales tax exceeding 2.6%; if its portion is ½, employers’ FICA behaves as a sales tax of almost 4%. (Refer to the following message entitled “Current federal sales tax rate” for further explanation).
Currently wage earning families FICA expenses are directly 7.65% of their wages and indirectly what’s effectively the federal sales tax. If they spend their entire incomes derived from wages, they are paying somewhere between 10.25% and 11.66% for FICA.
(Regardless of income sources, (due to employers’ FICA all purchasers of U.S. products pay between 2.6% to 4% for the equivalent of a federal sales tax).]
Because FICA is directly levied upon employers’ payrolls, (unlike other sales taxes), FICA levied upon enterprises increases in step with their payrolls, thus discourages hiring and is a more specific drag upon aggregate wages and the economy.
Respectfully, Supposn