Quote Originally Posted by foxtrot View Post
Answer:
SS, Medicare yes, not refundable and deducted at flat percentages. Everything else: generally they don't pay (deducted sometimes, but refunded and then some). With things like Earned Income Credit +refunds the government gives them substantially more than they ever paid in. Thus, only about 50% of the country pays any taxes at all although a higher percentage had taxes originally deducted.
Yeah, I knew the 50% pay no taxes bit, I just thought federal, and they actually get paid to be "low income". SS and Medicare...hmmmm.

How much interest, if any, is earned on the taxes withheld throughout the year, then finally returned?