Neither, a tax in which everyone pays the same percentage is called a flat tax.
is there an age limit on who pays fica taxes
1. Money left after a business pays expenses
You can in the UK
Your premise is wrong. FICA is paid on FICA wages (different than reportable income in many ways), and is paid by everyone up to a certain FICA wage limit, which increases with cost of living...currently about 102K a year. If your seldf employed, you pay essentially 2x as much as an employee...because the company of an employee pays half the total 15.3% total tax. (So the owner of your company pays 7.65% FICA for each of his employees).
You.
regressive.
A taxation strategy where everyone pays the same dollar amount regardless of income is a?
A proportional tax takes the same percentage of income no matter your income level. A progressive tax, on the other hand, takes a larger percentage of income as your income increases. An example of a proportional tax is the Medicare tax (everyone pays 1.45% of all income), while the U.S. income tax is an example of a progressive tax (higher incomes get bumped into higher tax brackets). Many people believe sales taxes to be proportional because everyone pays the same rate, but because sales taxes only apply to spending rather than overall income they almost always turn out to be regressive.
a tax system in which everyone pays the same percentage of their income no matter how little or how much they make
a tax system in which everyone pays the same percentage of their income no matter how little or how much they make
Answer:Double edged sword - Regressive as it is hoped that the raising of them causes less purchases of the product, so less tax could be raised. Hopefully, the same $ would still be spent on another taxable item.Progressive as the lessening of smoking will lower society health costs and the need to fund medical programs.Answer:In economics, a progressive tax is defined as one in which the effective tax rate increases as the taxable base amount increases. In most cases, the base amount may be income or expenditure. Strictly speaking, consumption taxes are neither progressive nor regressive, since their rates do not vary with the amount of expenditure. However, a less rigorous definition of the taxable base might be the taxpayer's ability to pay. Under that definition, consumption taxes, like taxes on gasoline, alcohol and cigarettes, are perceived as regressive, since a greater proportion of the expenditures of individuals with lower income goes to paying the taxes.
The so-called Flat Tax.
a "progressive tax" A "progressive" tax system. == ==
A tax is "progressive" when the tax is higher on higher incomes, so that the more money you make, the higher the percentage you pay in taxes. A "regressive tax" is a tax that is higher on LOWER incomes, so that a low-income person pays a higher percentage in taxes than a low-income person would. Highly progressive taxes are sometimes self-defeating. In England in the 1970's, for example, income taxes were at higher and higher rates up to the point that very high earners were paying 95% of their income in taxes. Since rich people have the freedom to move around, a high tax rate gives them an incentive to move. So after the Beatles recorded "Tax Man" ("That's one for you , 19 for me, Taxman!") John Lennon left England and moved to New York, taking ALL of his income with him. So he was paying 50% taxes to the US, and no taxes at all to England.
everyone who pays for it
The employer pays a percentage of payroll as unemployment insurance premiums.
progressive tax [novanet]