For the tax year 2011the Social Security tax rate applied to pre-retirement employees is reduced from 6.2%

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For the tax year 2011the Social Security tax rate applied to pre-retirement employees is reduced from 6.2% to 4.2%. Compute and explain the tax savings for workers in each of the following situations:
a. Annual income of $50,000
b. Annual income of $100,000
c. Annual income of $150,000
d. Annual income of $250,000
e. Compare the above four answers and explain the pattern you observe.
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Public Finance

ISBN: 978-1111526986

2nd edition

Authors: John E. Anderson

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