Medicare Tax

Medicare Tax

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  • Medicare Tax
  • There's two guys on the street both alike but pretty different in an important way. 
  • Both guys here are on someone's payroll. But the difference is in how much gets taken out of their checks. The guy on the left makes $225,000 while the guy on the right makes $115,000. 
  •  The guy on the left makes $225,000 so he loses 1.45% cause of Medicare then 2.35% which is more than the guy on the left who only makes $115,000 and gets 1.45% taken for Medicare. This tax only affects people who earn wages and their employers.
  • Medicare just pays our hospitals and the costs from people with Medicare i.e. older people who are 65 and older and young people with disabilities.
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