system
Given the following post, respond as if you're commenting on Reddit:
human
CMV: Social Security (FICA) tax is the worst tax in existence and should be completely restructured or eliminated entirely

**TLDR:** If you aren't wealthy you pay more in effective social security tax  i.e. FICA than someone who is wealthy

The social security tax (FICA) is the worst tax in existence and should either be completely eliminated and changed to a true flat/progressive tax. There are 3 main types of income tax (progressive, flat, and regressive) - listed in their order of terribleness.

Here is an example of each:

Person A is wealthier they make 400k

Person B is not quite as wealthy they make 150k

**Progressive Tax (i.e. richer people pay more effective tax)**

Under a progressive tax with brackets 10% (0-100k), 20% (100-200k), and 30%  (200k+)

Person A who is in the 30% tax bracket pays 100k \* 0.1 + 100k \* 0.2 + 200k \* 0.3 = 90k or **22,5% in tax**

Person B who is in the 20% tax bracket pays 100k \* 0.1 + 50 \* 0.2 = 20k or **13.3% in tax**

Govt collects 110k in taxes

As you see Person A who makes more money pays more in taxes. This makes sense and as they continue to make more taxes their tax rate will either asymptotically approach 30% (if that's the highest tax bracket) or get moved into an even higher bracket.

**Flat Tax (i.e. everyone pays the same effective tax)**

This one is very simple whatever the tax rate is everyone pays the same regardless of their income (sales tax is an example of a flat tax, also most state taxes tend to be - some pretend to be progressive but the highest tax bracket is like 7k+ so everyone is in it e.g. Georgia

With a 20% flat tax

Person A  pays 400k \* 0.2 = 80k  or **20% in tax**

Person B pays 150k \* 0.2 = 30k or **20% in tax**

Govt collects 110k in taxes

Ok this may seem more "fair" but as we know it isn't since most of us agree people who make more should pay more in tax so it really isn't as fair. But it's not the end of the world right? Just wait for a regressive tax

**Regressive Tax (i.e. poorer people pay more effective tax)**

Suppose there is tax of 37% but it only applies to your first 150k of income

Person A pays 150k \* 0.37 = 55.5k or **13.9% in tax**

Person B pays 150k \* 0.37 = 55.5k or **37% in tax**

Govt collects 111k in taxes

Ok we can all agree this is unfair. Even flat tax advocates have to see this is incredibly unfair. This is effectively how social security (but wait it's even worse)...

So FICA which includes both Social Security and Medicare is a **7.65%** tax paid to the federal government which everyone pays. It works exactly how the regressive tax outlined works. For example a single filer pays FICA tax on their first 142k in income.

Using the federal tax brackets and including FICA someone who makes 142k a year and is a single filer is in the 24% tax bracket. However since in the US the federal tax is a progressive system they effectively only pay **17.7%** in taxes but with FICA that brings it to **25.35%.** In fact the income they earned between 40-140k was taxed at **\~30%**. However as stated above FICA is maxed out at 142k so income earned after that is not subject to FICA. The next 100k in income they earn they will have a lower effective tax rate than the effective tax rate they had from 40-140k.

But it gets even worse. We are assuming this person isn't self employed. The 7.65% you pay is only *half* of FICA generally your employer pays the other half but some aren't that lucky. For those who are self employed FICA is a whopping 15.3%. If this sad sap is self employed they will be paying more tax than those in the *highest* federal income tax bracket. Simply unbelievable. A self employed worker make 60k a year has a **26%** effective tax rate. Not to point fingers but that's more than the Biden's paid this year in federal taxes on 600k in jointly filed income (and likely more than Donald Trump and most other presidents for that matter).

In summary, FICA is absolutely shit and they should either completely restructure it to a flat or progressive tax, or get rid of it entirely. Being a young person in my 20s I doubt I will see a single penny paid into FICA given the direction things are going in this country - it's a complete travesty.
gpt
This is not the worst tax in existence, because it pays for a valuable service to society.

Could it be better?  Sure.  Could we structure it differently?  Sure.

But the worst tax in existence would be a tax that provided no tangible societal benefit, for example poll taxes that were solely designed to disenfranchise voters in Jim Crow South.