Crucially, this need not be, and should not be, a matter of raising taxes in the aggregate. The proceeds from a gasoline tax ought to be used to finance cuts in other taxesâthis, surely, is the way to present them to a sceptical electorate.
Social Security and Medicare Withholding Rates. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.
For 2013, the Social Security tax reverts to its normal tax rate of 6.2% for employees, 6.2% for employers, and 12.4% for self-employed persons. Thus for 2011 and 2012, we substitute 4.2% for 6.2% in the above math formulas for the amount paid by the employee.