To the editor:
Our elected senators and representatives have been debating the Bush-era income tax cuts and have voted to extend them for all income levels. I am puzzled that none of these elected officials include the FICA tax on income when debating this issue. The FICA, Social Security tax, rate is 12.4 percent; 6.2 percent paid by the worker and 6.2 percent paid by the employer. During 2010, this tax is collected on income up to $106,800; no FICA tax is collected on income over $106,800.
The 2009 federal income tax rates on taxable income for married couples filing jointly were: 10 percent on income up to $16,700, 15 percent on income between $16,700 and $67,900, 25 percent on income between $67,900 and $137,050, 28 percent on income between $137,050 and $208,850, 33 percent on income between $208,850 and $372,950, and 35 percent on income over $372,950. Adding the FICA tax of 12.4 percent to these income tax rates shows that a couple with combined wages between $67,900 and $213,600 pay a higher tax rate on their income than a single person or couple with income over $372,950.
I urge everyone to do the math on your income taxes and compare them with the taxes paid by the top income bracket. Then contact your senators and representative and demand that they fix this unfair income tax practice.