#economics

Total effective tax rates (includes all taxes: federal+state income tax, sales tax, property tax, etc) for the richest Americans declined by 2018 to a level beneath that of the bottom 50% of earners,[18] contributing to wealth inequality. Analysis by economists Emmanuel Saez and Gabriel Zucman.

The Federal Insurance Contributions Act (FICA /ˈfaɪkə/) is a United States federal payroll (or employment) tax payable by both employees and employers to fund Social Security and Medicare[1]—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Since 1990, the employee's share of the Social Security portion of the FICA tax has been 6.2% of gross compensation up to a limit that adjusts with inflation.[a][9] The taxation limit in 2020 was $137,700 of gross compensation, resulting in a maximum Social Security tax for 2020 of $8,537.40.[7] This limit, known as the Social Security Wage Base, goes up each year based on average national wages and, in general, at a faster rate than the Consumer Price Index (CPI-U). The employee's share of the Medicare portion of the tax is 1.45% of wages, with no limit on the amount of wages subject to the Medicare portion of the tax.

So personal income tax in the US is ~30% for most of us (ranging from ~10%-37%), compared to Social Security's ~6.2% Medicare is 1.45% (or 12.4% + 2.9% if you count the employer portion). AND only the first ~$137K is taxable so our maximum tax amount to Social Security and Medicare is capped, while normal income tax that politicians can direct to anything from foreign wars to immigration enforcement to redistribution to different states or interest on debt driven by tax breaks to the rich that caused deficits.

An average of 9,000 refugees were admitted monthly between January 2024 to January 2025. From February to December 2025, there were 1,226 total admissions, 1,059 of whom were from South Africa.

It's quite disappointing that these policies - especially the H1B tax, which brings the best and brightest in the world to the US - all target legal immigrants.

I love this report!

This data-driven, impartial report contains historic metrics — how you use them to advocate for the changes you want to see in the country is up to you.

Most spending was on Social Security, national defense, grants to state and local governments, Medicare, and interest on the debt. Spending and revenue were both higher than their pre-pandemic levels, and the federal government ran another deficit as spending outpaced revenue.

Why do we always lump Social Security in with other national spending? Social Security is collected separately from all other tax revenue and goes directly to the Social Security trust fund. That money cannot be put anywhere else. Politicians can't direct Social Security goes into a trust fund and politicians can't change how it's spent, unlike defense spending and other spending. In my view, Social Security should be separate. It's not the government's money to spend, it's money that is given back to the people directly. So comparing national defense, which the government can choose to change the spending levels, reallocate it to other spending priorities, Social Security cannot be because it's a trust fund.

Public schools took in and spent more funds than ever before. It also had mixed impacts on teachers and students. The number of public-school teachers has increased each year since 2020 while the number of students has decreased or stayed the same. Meanwhile, test scores have fallen.

Well we have to do something about that and be drastic about it. However, I don't see how cutting funding alone - the current Republican priority - will help.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

It’s clear that the huge spending on AI is adding to the U.S. economy, but the available economic data doesn’t neatly capture its effects. The debating economists and the slippery data suggest that if the technology does start to reshape the economy, it may be challenging to detect and clearly measure. That may leave political and corporate leaders to choose the numbers that fit their preferred narratives on how AI is changing American life and work.

That’s because the $31 trillion in yearly U.S. gross domestic product, the widest measure of the economy, tallies only the final value of products and services produced domestically. Spending on imports and foreign made components is subtracted because it boosts the economies of other countries, not that of the United States.

Roughly three-quarters of the cost of an AI data center is for the computer gear and parts such as computer chips that go inside of it, technology analysts estimate. America’s AI champions, including the computer chip pioneer Nvidia, manufacture many of their products in Asia — despite efforts by the Biden and Trump administrations to reduce U.S. dependence on essential chips made overseas.

And some forecasters say that the U.S. government’s economic data is a poor measure of the impact of AI and that alternative calculations show the current boom is an even bigger boost to economic growth.

“This is a big deal, but not the be-all and end-all,” said Joseph Politano, an economic analyst who writes the Apricitas Economics newsletter. He calculates that AI-related spending contributed about 0.2 percentage points to the 2.2 percent U.S. economic growth last year.

The AI buildup is putting real money into the pockets of some Americans and U.S. businesses. Stock market gains from AI enthusiasm are plumping up Americans’ investment portfolios.

“The two engines of today’s economy are the AI ecosystem and wealthy consumers,” Richmond Fed President Tom Barkin said in a January speech.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.

Prominent economists, including from Morgan Stanley and JPMorgan Chase, calculate that the AI buildup was directly responsible not for 92 percent or 39 percent of gains to the U.S. economy in 2025, but as little as zero.