What is the one way fica taxes differ from the federal incone tax?

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1284101

2026-03-13 11:50

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FICA taxes, which fund Social Security and Medicare, are specifically earmarked for social insurance programs, while federal income taxes are used for a broader range of government expenditures, including infrastructure, defense, and education. Additionally, FICA taxes are assessed at a flat rate on earned income, whereas federal income tax rates are progressive, meaning they increase with higher income levels. FICA taxes do not have a standard deduction or personal exemptions, unlike federal income taxes.

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