Image: Effective Payroll Tax rate for Different Income Percentiles (2010)

Description: Effective payroll tax rate for different income percentiles (2010); 1.) Payroll tax includes both the employee and employer portion of Social Security and Medicare tax. 2.) Income is the sum of wages, salaries, self-employment income, rents, taxable and nontaxable interest, dividends, realized capital gains, cash transfer payments, and retirement benefits plus taxes paid by businesses (corporate income taxes and the employer's share of Social Security, Medicare, and federal unemployment insurance payroll taxes) and employee contributions to 401(k) retirement plans. Other sources of income include all in-kind benefits (Medicare, Medicaid, employer-paid health insurance premiums, food stamps, school lunches and breakfasts, housing assistance, and energy assistance). 3.) Effective payroll tax rate = payroll taxes paid / total income
Title: Effective Payroll Tax rate for Different Income Percentiles (2010)
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Author: Guest2625
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