Tag: federal income tax
Four out of five retired households will pay little or no income taxes. But the tax rates at the highest income levels are meaningful, averaging 11 percent of household income and as much as 23 percent at the very top. These estimates come from a new analysis by the Center for Retirement Research that sheds…
The brief’s key findings are: Low earners receive much more in Social Security benefits than they pay in Social Security taxes, reflecting the program’s progressive design. The interaction between Social Security provisions and income taxes has little net effect on the program’s progressivity: the exemption of employers’ Social Security contributions from workers’ income taxes makes the system…
