The biggest part of that is social insurance. It’s called a tax (FICA) in America to make people hate it.
And here’s the fun part: there’s an annual cap which is about the same as a construction worker’s salary. Once the cap app is reached they stop deducting it. So high earners only pay it for the first few pay periods of the year.
I remember the first time I earned more than the cap. I thought somebody had made a mistake when my take-home pay went up mysteriously in the middle of the year. So imagine: Bezos and friends are all done paying FICA in the first ten or fifteen minutes of the year.
The biggest part of that is social insurance. It’s called a tax (FICA) in America to make people hate it.
And here’s the fun part: there’s an annual cap which is about the same as a construction worker’s salary. Once the cap app is reached they stop deducting it. So high earners only pay it for the first few pay periods of the year.
I remember the first time I earned more than the cap. I thought somebody had made a mistake when my take-home pay went up mysteriously in the middle of the year. So imagine: Bezos and friends are all done paying FICA in the first ten or fifteen minutes of the year.