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View Full Version : the payroll tax is calculated in flat percentage on income.



hovercraft22
December 29th, 2007, 12:32 AM
Hi friends, there is no circular from Bush for any cut in the tax, which is the most regressive tax imposed by the federal government. The income tax, which is increased, the payroll tax is calculated in flat percentage on income. The payroll tax is levied only on the first $70,000 or so in income and this limitation means for high income taxpayers, and the payroll tax is a much lower proportion of their income than for middle and lower income families which is hardly 1 percent for a millionaire, compared to 15.3 percent for the average persons.