Sep. 17th, 2012

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I think of myself as reasonably intelligent. I understand numbers better now that I'm older (and started paying attention to statistics), and I grew up thinking about and discussing politics.

So when I say I'm confused by the pie chart in this article, it is not an easy admission to make.

What does it mean that those of us who pay payroll tax do not pay federal income tax? This is not me trying to make a political point; it's genuine confusion. Because I thought the money the government took from me, which helps pay for a lot of things I like and some things I don't, was income tax. My W-2 form says what percentage of it is Federal, what percentage is state, and what percentage, if any, is local. Are there people who pay FICA, but don't have Federal tax removed?

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