How Much Money the Payroll Tax Brings In
Alright, but how much money are we really talking about? In 2019 alone, payroll taxes brought in $1.243 trillion. According to the Congressional Budget Office, in 2020, however, this number is expected to jump to $1.3 trillion. This means that all in all, payroll taxes are the second largest source of revenue for the federal government.
And this is with the current cap. It is, therefore, obvious that we must ask ourselves just how much money could we amass in payroll taxes if we either lifted the cap altogether or if we simply set it higher? Clearly, there is a large portion of money left untouched, and if we were to consider taxing it, what would our reserves look like instead?
Moreover, would the worries of soon-to-be retirees be completely wiped off? Let’s find out.
