The Impact Of Payroll Tax

The top 1 percent of the wealthiest people in the U.S. pay a total of over 40 percent of all federal income taxes, which is more than the entire bottom 95 percent of all tax payers. Government programs are funded through Social Insurance Taxes that are the fastest growing source of federal income though it’s actually counted separately in special trust funds by the Treasury. Both federal and state governments combine these taxes that are used to pay for social programs such as social security, Medicare, and unemployment services. This type of taxation is a regressive tax, since lower income people end up paying more from their income than those with a higher income. Another federal tax is the excise tax, better considered a luxury tax for non-necessities, which include things like liquor, cigarettes, gas, and highways. Taxes that are imposed on imported goods so that there’s less foreign competition on the domestic market are called customs duties.

Another factor to consider is the employment rate from state to state. The Medicaid program funds out of general tax revenues. In other words, the employee is helping to pay for the Medicaid program through their federal and state withholding tax. However, at times relying on employee tax may be unstable. When people are out of work and qualify for more

Other costs are the January 1, 2013, increase in the Medicare tax rates by 0.9% for a single wage earners with incomes over $200,000 or married over $250,000 which are part of the new taxes enacted to help support the ACA (Manchikanti et al., 2011). However, the economic and jobs stimulus tax cuts enacted in 2010 expired at the end of 2012, and all wage earners Medicare tax rates increased from 4.2% to 6.2% to help pay for the ACA (Miller, 2012).

Raising the federal minimum wage to $15 an hour can have detrimental effects on society. Some issues that may arise are increases in unemployment and small businesses not being able to handle the financial burden, which will lead into job benefit cuts. Furthermore, a rise in minimum wage will cause inflation and businesses to raise the prices of their goods and services. People purchasing power will continue to stay the same; the struggle to close the gap between products and services will not

According to Shultz (2002), individuals and businesses fund the Federal Government through personal income and payroll taxes. With the unemployment rate at 8.1% as of January 1st, 2014 (Bureau of Labor Statistics, 2014), created an overall shortage in both individual and business taxes.

The U.S. Government receives most of its tax revenues from the labor of its people and

In my opinion as to whether or not the current federal income tax structure is fair for most Americans is that it is not fair. The following information will provide support for my decision. The main federal tax brackets are for single individuals, married individuals filing separately, married individuals filing as a couple and individuals filing as a head of household. In the financial year 2014, the lowest tax bracket paid a rate of 10% on income up to $9,075 while the highest bracket paid an average rate of 36.4% ($406,751 and above). Most individuals pay taxes across several tax brackets, and as a result, they end up with the progressive tax structure. In the current progressive federal income structure, individuals with a lower

Even though Ms.Steele considers the down fall of raising minimum wage, Mr.Knight provides clear evidence that raising minimum wage would help the America's economy.A 2011 study showed that increasing minimum wage lead to higher consumer spending.Another study showed that in the first six months of 2014 states that increased minimum wage, increased in jobs also.Last but not least, in 2014 University of Massachusetts Ameherst found that increasing minimum wage would lift 4.5 million Americans out of poverty and 3.5 million from food stamps.

Change in union payroll deduction was another item taken away from members. This means that  all public-employee unions would be barred from automatically deducting union dues and political contributions from members’ payroll checks. People  in support of this feel that public employees are paid through state money and state funds should not have a role in compiling political funds. Proponents defend that unions should have no problem coming up with ways of guaranteeing payment from their members. According to The Des Moines Register, “Unions say automatic deductions, which are not mandatory, ease administration for workers and unions, and that political donations collected by the union from their members gives them a voice in public policy.

Note that the Social Security rate for employer's and employee's is currently 6.2%. Every year the limit changes for Social Security wages and is the maximum yearly pay required for Social Security taxes. The 1.45% tax rate for Medicare for both employer and employee has not changed since 2013. Medicare taxes are not based on wages.

Although, the minimum wage is not the same in all place in the States, almost all those who are depending on it are unsatisfied and are hoping for a rise even though some people see the rising as risky. In 1992, Card David wrote an article about Using Regional Variation in Wage to Measure the Effects of the Federal Minimum Wage. He pointed out that '' arise in the federal minimum wage will typically affect a larger fraction of workers especially teenagers in some states than in others. That variation across states depend on the fraction of workers initially earning less than the new minimum.'' (Card David 1) He agreed that many States had already passed state – specific minimum wages above the new federal standard. As a result, the fraction

Both the worker and boss add to FICA add to FICA tax equally. Social Security is 6.2% on the principal $113,700 of a worker's pay if it is at or beneath the Social Security wage base. Medicare duty is 1.45% of the employee Medicare assessable wages. The aggregate finding for FICA is 7.65% from an employee paycheck. The company also you pay a 7.65% contribution. FICA taxes are used to cover care for the public. Social Security goes toward the individuals who are resigned, debilitated, or to the deceased family members. Medicare pays for doctor's facility related advantages like hospice care and home health care. Wage garnishments are reimbursement of credits or child support requested by the court that are detracted from total

The Table 1 above can justify the impact of applying the 20% deduction on various salary levels, with more adverse effect for those graduates who will be earning FJ$18,000 or less. A graduate with salaries level of FJ$10,000 and/or FJ$12,000 will basically earn FJ$95.08 and/or FJ$39.69 below poverty line, respectively. Whereas graduate students with salary level of FJ$15,000 and FJ$18,000 will manage to earn a marginal FJ$43.38 and FJ$121.08 above the poverty line. One critical factor that we need to find, upon the availability of data is what is the proportion of students currently taking programs that will fall into these income levels category of FJ$18,000 and below?. According to FNU Strategic Plan 2020, on average 87.5% of their graduates from the period 2010-2013 were from the certificates and diploma programs, and this is expected to continue towards the TELS program period.

Tax system is a legal system of imposing and collecting taxes from the citizens of the country. As it has been stated by Albert Einstein, the hardest task in the world is to understand the tax system of a country. The United States’ tax system is so complicated that its tax code contains almost 3 million words and 6,000 pages. Moreover, the taxes implied by city and state governments add more complexity to the federal taxation system. In this case, we do not need to understand the complexity of tax code system in order to get acquainted with the significant role of taxes in American society.

The Federal Government relies predominately on the individual income tax, and federal income tax makes up more than 50 percent of the federal government’s revenue. Income taxes are paid by all those who earn income (Mikesell, 2011). It is essentially a bill from the federal and state governments for individual earnings through salaries and investment profits. Income tax is considered a progressive tax because the individual's financial obligation rises with the level of reportable income (Mikesell, 2011). Although income tax is the one of the most effective ways of raising revenue for the government, it is also one of the most controversial.