What are the different Medicare tax rates?

The comprehensive healthcare program for the elderly, the American Medicare program, taxed employees in 2011 1.45% of their entire earnings, the amount of their employers was required. In addition, employers pay 1.45% of their total wages from their own funds and the self -employed employees pay 2.90%. Taxes are paid through the mechanisms stipulated by the Act on Insurance Contributions (FICA) and Employers as well as taxpayers harmonize the amounts paid by submitting their annual income tax return. The worker, who earned $ 6,600 or more in 1966, had a $ 23.10 in 1966 in Dani Medicare from his remuneration during the year and this amount was assigned by his employer. The self-employed paid the same rate as other workers-0,35%-without appropriate contributions; This obvious inequality in the plan was a frequent goal of critics. In 1973 the employee's rate almost tripled to 1%and earningsincreased to $ 10,800. The maximum tax of Medicare, which the US worker paid in 1973, rose to $ 108, which was connected by his employer; The self -employed also paid a maximum of $ 108, without the employer's match.

In 1974, in 1974, the Medicare tax rates for employees and self -employed were reduced to 0.90%, but the earnings continued to increase, so the total tax paid annually by workers earning more than increases. The rate returned to 1% in 1978 and reached 1.35% in two steps in the next three years. The earnings cap also increased annually and reached $ 29,700 until 1981. Over the next five years, the Medicare tax rates increased to 1.45% for employees and self -employed and the earnings increased to $ 42,000. In 1984 the inequality of the rate paid by self -employed was dealt with whenCongress doubled the rate of this group; Since then, self -employment has paid the employee's share and the share of the employer in Dani Medicare.

The

rate of 1.45% remains stable since 1986, but the limit of earnings, the same used to calculate social security taxes, is constantly increasing. Before 1991, the same limit of earnings was related to both Medicare and Social Security; In 1991, however, social security earnings increased to $ 53,400, while Medicare's earnings flew to $ 125,000. The cap in the next two years increased to $ 135,000, then raised completely.

Although the Congress in the political climate determined the Medicare tax rates, their actions were informed by the same economic reality with which they face the insecurity of Rance when they determine health insurance premiums. Dana Medicare detained the reward of workers, along with the premiums to part B taken from the pensioners, finance the Medicare program, which is not only faced with the growing popLaci participants, but also rising health care costs. This is the main reason for the dramatic increase in the Medicare tax restriction at the beginning of the 90's, followed by a complete removal of the ceiling.