Are payroll taxes flat or progressive?

Payroll taxes are generally progressive, which means that the tax rate increases as the amount of income subject to the tax increases.

For example, the federal income tax is a progressive tax, with higher tax rates applying to higher levels of income. The tax rate for each tax bracket is based on a percentage of the income that falls within that bracket. As a result, taxpayers who earn higher levels of income will pay a higher percentage of their income in taxes than taxpayers who earn lower levels of income.

Social Security and Medicare taxes are also progressive taxes, with higher tax rates applying to higher levels of income. The tax rate for Social Security and Medicare taxes is based on a percentage of the employee’s earnings, and the tax rate increases as the amount of earnings subject to the tax increases.

Overall, payroll taxes are generally progressive, which means that the tax rate increases as the amount of income subject to the tax increases. This progressive structure is designed to ensure that higher-income taxpayers pay a larger share of their income in taxes than lower-income taxpayers.

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