Question of the Day
When the Medicare payroll tax was first implemented in 1966, the maximum yearly tax per worker was $46, which is $359 adjusted for inflation into today's dollars. What is the maximum yearly Medicare payroll tax per worker today?
Due to a series of tax increases passed over time, the maximum Medicare payroll tax is now technically unlimited. Workers who earn more than $1.32 million per year now pay more than $50,000 per year for this tax. This tax only funds Medicare hospital insurance, which is about 36% of Medicare's total spending. Other Medicare benefits, like physician services, lab tests, and prescription drugs, are funded through other taxes, premiums, and miscellaneous receipts.