Federal income tax, plus many get money back.
Everybody who has a job has to pay payroll taxes, which is a flat tax on your income (i.e., an “income tax”) with no exemptions for low pay. The rate is the same (15.3%) for a guy who makes $3,000 a year as for the guy who makes $70,000 a year. The only ones who get a break are the ones who make more than $106,800 a year, because above that amount, no more payroll taxes are due. So it’s a flat tax that excludes most of the income of the very wealthy. Hmmm....
Not to mention that if your income is from dividends, interest, rents, royalties, or the like (think rich people again), your income is exempt from payroll taxes entirely.
No wonder Warren Buffett says he pays a lower effective tax rate than any of his office staff.
I’m not for penalizing the very rich, but I think they should pay taxes at the same rate as someone who works hard at his small business and makes $106,800 a year.