Our Real Tax Rates
So if there is no fund and social security tax is just another income tax, what are the current tax rates? Social security charges 6.2% to the individual and 6.2% to the company. I'm going to assume a tax is a tax, whether the company pays it as part of your benefits (from the employer's perspective) or the employee pays it directly. If you disagree that splitting the tax is more than just an attempt to make the tax look smaller than it really is feel free to subtract 6.2% from the results.
|Tax Rate||Tax w/ SS||Single Filer's Income|
The tax rates don't look so progressive any more, do they?
UPDATE: I should point out this table is intended to be used as a talking point, representing the most extreme interpretation of the social security tax. In my opinion, only the portion of the tax that goes into the trust fund really should be treated as a normal tax. Unfortunately, I'm having trouble finding that number. If I find it I'll add a column to the chart.
UPDATE 2: fixed the link to the original tax bracket table.