[Am-info] Re: Medicare and Social Security

[sturde@az.com]

In <20020721023800.25579.64177.Mailman@venice.essential.org>, on 07/20/02 
   at 10:38 PM, am-info-request@venice.essential.org said:

>It seems clear to me that we pay 12%, not 6% since the employer's
>contribution

On earned income (not rents, dividends, but someone working) Medicare and
Social Security taxes are 15.3%.  They are used for old age pensions,
medical care and for disabled people.  Employer puts in 7.65%; employee
puts in 7.65%.  It is a flat tax.  If an employee only earns $10,000.00 a
year, $765.00 dollars is taken from his income.  He will probably pay no
income tax, but Social Security and Medicare are inexorable.  A self
employed person pays 15.3% of 92.5% of his Schedule C income, that is 1
dollar in six of his net profit.

James Sturdevant


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sturde@az.com

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