Social Security taxes are regressive taxes, meaning lower earners have larger portions of total withheld income than higher earners. For example, person X, who earns $175,000 annually, pays about $7,885 in Social Security tax, approximately 4.5 percent. Person Y earns $85,000 annually, so their tax rate is about 6 percent. People with incomes low enough to be exempt from federal income taxes will still have Social Security deductions.
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