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Medicare Tax

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Medicare Tax
A certain percentage of wages or salaries used to finance Medicare. Employees are required to contribute 1.45% of their income to pay for Medicare, with no income limit. Employers are required to make matching contributions for each employee.


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The new Medicare tax is not set to be indexed for inflation.
The National Center for Policy Analysis (NCPA) and the Institute for Research on the Economics of Taxation (IRET) have proposed six pro-growth policies for immediate consideration: * Extending the Bush tax cuts for everyone * Allow immediate expensing of investment * Extend the R&D tax credit and the patch for the alternative minimum tax (AMT) * Reduce the corporate tax rate * Eliminate individual and employer mandates to purchase insurance, and * Repeal Medicare tax hikes.
Helpful hint, the Medicare tax could also be included in your Social Security Tax
 
 
 
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