Today is Labor Day. President Obama in his speech in Detroit, MI, he said it is our day for the working class. The President confirmed his determination to extend the tax breaks for the middle class.
The Social Security tax in the States is not progressive but flat, the same to all 6.2%. By the tax cut measure, the rate is lowered for the middle class earners now. The measure will be expired this year if not extended.
Not only the Social Security tax is flat, it is capped. The tax is the same for all those who earn more than $106,800, the amount known as the "Social Security Wage Base".
The Social Security tax in the States is not progressive but flat, the same to all 6.2%. By the tax cut measure, the rate is lowered for the middle class earners now. The measure will be expired this year if not extended.
Not only the Social Security tax is flat, it is capped. The tax is the same for all those who earn more than $106,800, the amount known as the "Social Security Wage Base".