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(47,542 posts) Thu Dec 20, 2012, 02:17 PM Dec 2012

Question about payroll taxes

Just curious. Do the Romneys and Buffets of the world who make their money solely from investments pay SS and Medicare taxes? I think that these are applied only on earned income.

This means, of course, that not only do they pay lower rate than their secretaries, but they are also exempt from SS and Medicare that for many wage earners are higher than their income tax.

Do they?

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Question about payroll taxes (Original Post) question everything Dec 2012 OP

Social Security(SS) taxes are only taken on the first $110,100 of taxable earned income. AnnaLee Dec 2012 #1

AnnaLee

(1,041 posts)

1. Social Security(SS) taxes are only taken on the first $110,100 of taxable earned income.

Reply to question everything (Original post)

Thu Dec 20, 2012, 02:31 PM

Dec 2012

So anyone who does not receive the earned color money does not pay into SS. Of course, since some taxes on SS income are put back into SS, I guess you might consider SS benefits to be the only exception to this. It actually is probably better this way because it is workers funding worker's retirement in return for getting their turn. I do wish people understood this and would quit offering to give their surplus SS trust fund dollars to the rich.

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