Act of Congress
An Act of Congress is a statute enacted by the United States Congress. It can either be a Public Law, relating to the general public, or a Private Law, relating to specific institutions or individuals; the term can be used in other countries with a legislature named "Congress", such as the Congress of the Philippines. In the United States, Acts of Congress are designated as either public laws, relating to the general public, or private laws, relating to specific institutions or individuals. Since 1957, all Acts of Congress have been designated as "Public Law X-Y" or "Private Law X-Y", where X is the number of the Congress and Y refers to the sequential order of the bill. For example, P. L. 111-5 was the fifth enacted public law of the 111th United States Congress. Public laws are often abbreviated as Pub. L. No. X-Y; when the legislation of those two kinds is proposed, it is called public bill and private bill respectively. The word "act", as used in the term "Act of Congress", is a common, not a proper noun.
The capitalization of the word "act" is deprecated by some dictionaries and usage authorities. Some writers, in particular the U. S. Code, capitalize "Act"; this is a result of the more liberal use of capital letters in legal contexts, which has its roots in the 18th century capitalization of all nouns as is seen in the United States Constitution. "Act of Congress" is sometimes used in informal speech to indicate something for which getting permission is burdensome. For example, "It takes an Act of Congress to get a building permit in this town." An Act adopted by simple majorities in both houses of Congress is promulgated, or given the force of law, in one of the following ways: Signature by the President of the United States, Inaction by the President after ten days from reception while the Congress is in session, or Reconsideration by the Congress after a presidential veto during its session. The President promulgates Acts of Congress made by the first two methods. If an Act is made by the third method, the presiding officer of the house that last reconsidered the act promulgates it.
Under the United States Constitution, if the President does not return a bill or resolution to Congress with objections before the time limit expires the bill automatically becomes an Act. In addition, if the President rejects a bill or resolution while the Congress is in session, a two-thirds vote of both houses of the Congress is needed for reconsideration to be successful. Promulgation in the sense of publishing and proclaiming the law is accomplished by the President, or the relevant presiding officer in the case of an overridden veto, delivering the act to the Archivist of the United States. After the Archivist receives the Act, he or she provides for its publication as a slip law and in the United States Statutes at Large. Thereafter, the changes are published in the United States Code. An Act of Congress that violates the Constitution may be declared unconstitutional by the courts; the judicial declaration of an Act's unconstitutionality does not remove the law from the statute books.
However, future publications of the Act are annotated with warnings indicating that the statute is no longer valid law. Legislation List of United States federal legislation for a list of prominent acts of Congress. Procedures of the United States Congress Act of Parliament Coming into force Enactment Federal Register http://bensguide.gpo.gov/6-8/glossary.html
Taxing and Spending Clause
The Taxing and Spending Clause and the Uniformity Clause, Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States its power of taxation. While authorizing Congress to levy taxes, this clause permits the levying of taxes for two purposes only: to pay the debts of the United States, to provide for the common defense and general welfare of the United States. Taken together, these purposes have traditionally been held to imply and to constitute the federal government's taxing and spending power; the Congress shall have Power To lay and collect Taxes, Duties and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States. Under the Articles, Congress was forced to rely on requisitions upon the governments of its member states. Without the power to independently raise its own revenues, the Articles left Congress vulnerable to the discretion of the several State governments—each State made its own decision as to whether it would pay the requisition or not.
Some states were not giving Congress the funds for which it asked by either paying only in part, or by altogether ignoring the request from Congress. Without the revenue to enforce its laws and treaties, or pay its debts, without an enforcement mechanism to compel the States to pay, the Confederation was rendered impotent and was in danger of falling apart; the Congress recognized this limitation and proposed amendments to the Articles in an effort to supersede it. However, nothing came of those proposals until the Philadelphia Convention; the power to tax is a concurrent power of the individual states. The taxation power has been perceived over time to be broad, but has on occasion, been curtailed by the courts. United States v. Butler stated that the clause granted "a substantive power... to appropriate", not subject to the limitations imposed by the other enumerated powers of Congress. The Congress shall have Power To lay and collect Taxes, Duties and Excises This power is considered by many to be essential to the effective administration of government.
As argued under the Articles, the lack of a power to tax renders government impotent. The power is used to raise revenues for the general support of government. But, Congress has employed the taxing power in uses other than for the raising of revenue, such as: regulatory taxation – taxing to regulate commerce. In 1922, the Supreme Court struck down a 1919 tax on child labor in Bailey v. Drexel Furniture Co. referred to as the "Child Labor Tax Case". The Court had held that Congress did not have the power to directly regulate labor, found the law at issue to be an attempt to indirectly accomplish the same end; this ruling appeared to have been reinforced in United States v. Butler, in which the Supreme Court of the United States ruled that the processing taxes instituted under the 1933 Agricultural Adjustment Act were an unconstitutional attempt to regulate state activity in violation of the Tenth Amendment. However, despite its outcome, Butler affirmed that Congress does have a broad power to tax, to expend revenues within its discretion.
With the power to tax implicitly comes the power to spend the revenues raised thereby in order to meet the objectives and goals of the government. To what extent this power ought to be utilized by the Congress has been the source of continued dispute and debate since the inception of the federal government, as will be explained below. However, interpretations recognizing an implicit power to spend arising from this clause have been questioned, with the Necessary and Proper Clause being suggested as the actual source of Congress's spending power; the Supreme Court has found that, in addition to the power to use taxes to punish disfavored conduct, Congress can use its power to spend to encourage favored conduct. In South Dakota v. Dole, the Court upheld a federal law which withheld highway funds from states that did not raise their legal drinking age to 21. Several Constitutional provisions address the spending authority of Congress; these include both requirements for the apportionment of direct taxes and the uniformity of indirect taxes, the origination of revenue bills within the House of Representatives, the disallowal of taxes on exports, the General Welfare requirement, the limitation on the release of funds from the treasury except as provided by law, the apportionment exemption of the Sixteenth Amendment.
Additionally and the legislatures of the various states are prohibited from conditioning the right to vote in federal elections on payment of a poll tax or other types of tax by the Twenty-fourth Amendment. The Constitution provides in the Origination Clause that all bills for raising revenue must originate in the House of Representatives; the idea underlying the clause is that Representatives, being the most numerous branch of Congress, most associated with the people, know best the economic conditio
Revenue Act of 1913
The Revenue Act of 1913 known as the Underwood Tariff or the Underwood-Simmons Act, re-established a federal income tax in the United States and lowered tariff rates. The act was sponsored by Representative Oscar Underwood, passed by the 63rd United States Congress, signed into law by President Woodrow Wilson. Wilson and other members of the Democratic Party had long seen high tariffs as equivalent to unfair taxes on consumers, tariff reduction was President Wilson's first priority upon taking office. Following the ratification of the Sixteenth Amendment in 1913, Democratic leaders agreed to seek passage of a major bill that would lower tariffs and implement an income tax. Underwood shepherded the revenue bill through the House of Representatives, but the bill won approval in the United States Senate only after extensive lobbying by the Wilson administration. Wilson signed the bill into law on October 3, 1913; the Revenue Act of 1913 lowered average tariff rates from 40 percent to 26 percent.
It established a one percent tax on income above $3,000 per year. A separate provision established a corporate tax of one percent, superseding a previous tax that had only applied to corporations with net incomes greater than $5,000 per year. Though a Republican-controlled Congress would raise tariff rates, the Revenue Act of 1913 marked an important shift in federal revenue policy, as government revenue would rely on income taxes rather than tariff duties. Democrats had long seen high tariff rates as equivalent to unfair taxes on consumers, tariff reduction was President Wilson's first priority upon taking office, he argued that the system of high tariffs "cuts us off from our proper part in the commerce of the world, violates the just principles of taxation, makes the government a facile instrument in the hands of private interests." While most Democrats were united behind a decrease in tariff rates, most Republicans held that high tariff rates were useful for protecting domestic manufacturing and factory workers against foreign competition.
Shortly before Wilson took office, the Sixteenth Amendment, proposed by Congress in 1909 during a debate over tariff legislation, was ratified by the requisite number of states. Following the ratification of the Sixteenth Amendment, Democratic leaders agreed to attach an income tax provision to their tariff reduction bill to make up for lost revenue, to shift the burden of funding the government towards the high earners that would be subject to the income tax. By late May 1913, House Majority Leader Oscar Underwood had passed a bill in the House that cut the average tariff rate by 10 percent. Underwood's bill, which represented the largest downward revision of the tariff since the Civil War, aggressively cut rates for raw materials, goods deemed to be "necessities," and products produced domestically by trusts, but it retained higher tariff rates for luxury goods; the bill instituted a tax on personal income above $4,000. Passage of Underwood's tariff bill in the Senate would prove more difficult than in the House because some Southern and Western Democrats favored the continued protection of the wool and sugar industries, because Democrats had a narrower majority in that chamber.
Seeking to marshal support for the tariff bill, Wilson met extensively with Democratic senators and appealed directly to the people through the press. After weeks of hearings and debate and Secretary of State William Jennings Bryan managed to unite Senate Democrats behind the bill; the Senate voted 44 to 37 in favor of the bill, with only one Democrat voting against it and only one Republican, progressive leader Robert M. La Follette Sr. voting for it. Wilson signed the Revenue Act of 1913 into law on October 3, 1913; the Revenue Act of 1913 reduced the average import tariff rates from 40 percent to 26 percent. The Act established the lowest rates since the Walker Tariff of 1857. Most schedules were a percentage of the value of the item; the duty on woolens went from 56% to 18.5%. Steel rails, raw wool, iron ore, agricultural implements now had zero rates; the reciprocity program wanted by the Republicans was eliminated. Congress rejected proposals for a tariff board to fix rates scientifically, but it set up a study commission.
The Underwood-Simmons measure vastly increased the free list, adding woolens, steel, farm machinery, many raw materials and foodstuffs. The average rate was 26%; the Revenue Act of 1913 restored a federal income tax for the first time since 1872. The federal government had adopted an income tax in the Wilson–Gorman Tariff Act, but that tax had been struck down by the Supreme Court in the case of Pollock v. Farmers' Loan & Trust Co; the Revenue Act of 1913 imposed a one percent tax on incomes above $3,000, with a top tax rate of six percent on those earning more than $500,000 per year. Three percent of the population was subject to the income tax; the bill included a one percent tax on the net income of all corporations, superseding a previous federal tax that had only applied to corporate net incomes above $5,000. The Supreme Court upheld the constitutionality of the income tax in the cases of Brushaber v. Union Pacific Railroad Co. and Stanton v. Baltic Mining Co. A normal income tax and an additional tax were levied against the net income of individuals, as shown in the following table: There was an exemption of $3,000 for single filers and $4,000 for married couples.
Therefore, the 1% bottom marginal rate applied only to the first $17,000 of income for single filers or the first $16,000 ($352,300 in
The Washington Post
The Washington Post is a major American daily newspaper published in Washington, D. C. with a particular emphasis on national politics and the federal government. It has the largest circulation in the Washington metropolitan area, its slogan "Democracy Dies in Darkness" began appearing on its masthead in 2017. Daily broadsheet editions are printed for the District of Columbia and Virginia; the newspaper has won 47 Pulitzer Prizes. This includes six separate Pulitzers awarded in 2008, second only to The New York Times' seven awards in 2002 for the highest number awarded to a single newspaper in one year. Post journalists have received 18 Nieman Fellowships and 368 White House News Photographers Association awards. In the early 1970s, in the best-known episode in the newspaper's history, reporters Bob Woodward and Carl Bernstein led the American press' investigation into what became known as the Watergate scandal, their reporting in The Washington Post contributed to the resignation of President Richard Nixon.
In years since, the Post's investigations have led to increased review of the Walter Reed Army Medical Center. In October 2013, the paper's longtime controlling family, the Graham family, sold the newspaper to Nash Holdings, a holding company established by Jeff Bezos, for $250 million in cash; the Washington Post is regarded as one of the leading daily American newspapers, along with The New York Times, the Los Angeles Times, The Wall Street Journal. The Post has distinguished itself through its political reporting on the workings of the White House and other aspects of the U. S. government. Unlike The New York Times and The Wall Street Journal, The Washington Post does not print an edition for distribution away from the East Coast. In 2009, the newspaper ceased publication of its National Weekly Edition, which combined stories from the week's print editions, due to shrinking circulation; the majority of its newsprint readership is in the District of Columbia and its suburbs in Maryland and Northern Virginia.
The newspaper is one of a few U. S. newspapers with foreign bureaus, located in Beirut, Beijing, Bogotá, Hong Kong, Jerusalem, London, Mexico City, Nairobi, New Delhi and Tokyo. In November 2009, it announced the closure of its U. S. regional bureaus—Chicago, Los Angeles and New York—as part of an increased focus on "political stories and local news coverage in Washington." The newspaper has local bureaus in Virginia. As of May 2013, its average weekday circulation was 474,767, according to the Audit Bureau of Circulations, making it the seventh largest newspaper in the country by circulation, behind USA Today, The Wall Street Journal, The New York Times, the Los Angeles Times, the Daily News, the New York Post. While its circulation has been slipping, it has one of the highest market-penetration rates of any metropolitan news daily. For many decades, the Post had its main office at 1150 15th Street NW; this real estate remained with Graham Holdings when the newspaper was sold to Jeff Bezos' Nash Holdings in 2013.
Graham Holdings sold 1150 15th Street for US$159 million in November 2013. The Washington Post continued to lease space at 1150 L Street NW. In May 2014, The Washington Post leased the west tower of One Franklin Square, a high-rise building at 1301 K Street NW in Washington, D. C; the newspaper moved into their new offices December 14, 2015. The Post has its own exclusive zip code, 20071. Arc Publishing is a department of the Post, which provides the publishing system, software for news organizations such as the Chicago Tribune and the Los Angeles Times; the newspaper was founded in 1877 by Stilson Hutchins and in 1880 added a Sunday edition, becoming the city's first newspaper to publish seven days a week. In 1889, Hutchins sold the newspaper to Frank Hatton, a former Postmaster General, Beriah Wilkins, a former Democratic congressman from Ohio. To promote the newspaper, the new owners requested the leader of the United States Marine Band, John Philip Sousa, to compose a march for the newspaper's essay contest awards ceremony.
Sousa composed "The Washington Post". It became the standard music to accompany the two-step, a late 19th-century dance craze, remains one of Sousa's best-known works. In 1893, the newspaper moved to a building at 14th and E streets NW, where it would remain until 1950; this building combined all functions of the newspaper into one headquarters – newsroom, advertising and printing – that ran 24 hours per day. In 1898, during the Spanish–American War, the Post printed Clifford K. Berryman's classic illustration Remember the Maine, which became the battle-cry for American sailors during the War. In 1902, Berryman published another famous cartoon in the Post—Drawing the Line in Mississippi; this cartoon depicts President Theodore Roosevelt showing compassion for a small bear cub and inspired New York store owner Morris Michtom to create the teddy bear. Wilkins acquired Hatton's share of the newspaper in 1894 at Hatton's death. After Wilkins' death in 1903, his sons John and Robert ran the Post for two years before selling it in 1905 to John Roll McLean, owner of the Cincinnati Enquirer.
During the Wilson presidency, the Post was credited with the "most famous newspaper typo" in D. C. history according to Reason magazine. When John McLean died in 1916, he put the newspap
The United States of America known as the United States or America, is a country composed of 50 states, a federal district, five major self-governing territories, various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is smaller than the entire continent of Europe's 3.9 million square miles. With a population of over 327 million people, the U. S. is the third most populous country. The capital is Washington, D. C. and the largest city by population is New York City. Forty-eight states and the capital's federal district are contiguous in North America between Canada and Mexico; the State of Alaska is in the northwest corner of North America, bordered by Canada to the east and across the Bering Strait from Russia to the west. The State of Hawaii is an archipelago in the mid-Pacific Ocean; the U. S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across nine official time zones. The diverse geography and wildlife of the United States make it one of the world's 17 megadiverse countries.
Paleo-Indians migrated from Siberia to the North American mainland at least 12,000 years ago. European colonization began in the 16th century; the United States emerged from the thirteen British colonies established along the East Coast. Numerous disputes between Great Britain and the colonies following the French and Indian War led to the American Revolution, which began in 1775, the subsequent Declaration of Independence in 1776; the war ended in 1783 with the United States becoming the first country to gain independence from a European power. The current constitution was adopted in 1788, with the first ten amendments, collectively named the Bill of Rights, being ratified in 1791 to guarantee many fundamental civil liberties; the United States embarked on a vigorous expansion across North America throughout the 19th century, acquiring new territories, displacing Native American tribes, admitting new states until it spanned the continent by 1848. During the second half of the 19th century, the Civil War led to the abolition of slavery.
By the end of the century, the United States had extended into the Pacific Ocean, its economy, driven in large part by the Industrial Revolution, began to soar. The Spanish–American War and World War I confirmed the country's status as a global military power; the United States emerged from World War II as a global superpower, the first country to develop nuclear weapons, the only country to use them in warfare, a permanent member of the United Nations Security Council. Sweeping civil rights legislation, notably the Civil Rights Act of 1964, the Voting Rights Act of 1965 and the Fair Housing Act of 1968, outlawed discrimination based on race or color. During the Cold War, the United States and the Soviet Union competed in the Space Race, culminating with the 1969 U. S. Moon landing; the end of the Cold War and the collapse of the Soviet Union in 1991 left the United States as the world's sole superpower. The United States is the world's oldest surviving federation, it is a representative democracy.
The United States is a founding member of the United Nations, World Bank, International Monetary Fund, Organization of American States, other international organizations. The United States is a developed country, with the world's largest economy by nominal GDP and second-largest economy by PPP, accounting for a quarter of global GDP; the U. S. economy is post-industrial, characterized by the dominance of services and knowledge-based activities, although the manufacturing sector remains the second-largest in the world. The United States is the world's largest importer and the second largest exporter of goods, by value. Although its population is only 4.3% of the world total, the U. S. holds 31% of the total wealth in the world, the largest share of global wealth concentrated in a single country. Despite wide income and wealth disparities, the United States continues to rank high in measures of socioeconomic performance, including average wage, human development, per capita GDP, worker productivity.
The United States is the foremost military power in the world, making up a third of global military spending, is a leading political and scientific force internationally. In 1507, the German cartographer Martin Waldseemüller produced a world map on which he named the lands of the Western Hemisphere America in honor of the Italian explorer and cartographer Amerigo Vespucci; the first documentary evidence of the phrase "United States of America" is from a letter dated January 2, 1776, written by Stephen Moylan, Esq. to George Washington's aide-de-camp and Muster-Master General of the Continental Army, Lt. Col. Joseph Reed. Moylan expressed his wish to go "with full and ample powers from the United States of America to Spain" to seek assistance in the revolutionary war effort; the first known publication of the phrase "United States of America" was in an anonymous essay in The Virginia Gazette newspaper in Williamsburg, Virginia, on April 6, 1776. The second draft of the Articles of Confederation, prepared by John Dickinson and completed by June 17, 1776, at the latest, declared "The name of this Confederation shall be the'United States of America'".
The final version of the Articles sent to the states for ratification in late 1777 contains the sentence "The Stile of this Confederacy shall be'The United States of America'". In June 1776, Thomas Jefferson wrote the phrase "UNITED STATES OF AMERICA" in all capitalized letters in the headline of his "original Rough draught" of the Declaration of Independence; this draft of the document did not surface unti
United States Statutes at Large
The United States Statutes at Large referred to as the Statutes at Large and abbreviated Stat. are an official record of Acts of Congress and concurrent resolutions passed by the United States Congress. Each act and resolution of Congress is published as a slip law, classified as either public law or private law, designated and numbered accordingly. At the end of a Congressional session, the statutes enacted during that session are compiled into bound books, known as "session law" publications; the session law publication for U. S. Federal statutes is called the United States Statutes at Large. In that publication, the public laws and private laws are numbered and organized in chronological order. U. S. Federal statutes are published in a three-part process, consisting of slip laws, session laws, codification. Large portions of public laws are enacted as amendments to the United States Code. Once enacted into law, an Act will be published in the Statutes at Large and will add to, modify, or delete some part of the United States Code.
Provisions of a public law that contain only enacting clauses, effective dates, similar matters are not codified. Private laws are not codified; some portions of the United States Code have been enacted as positive law and other portions have not been so enacted. In case of a conflict between the text of the Statutes at Large and the text of a provision of the United States Code that has not been enacted as positive law, the text of the Statutes at Large takes precedence. Publication of the United States Statutes at Large began in 1845 by the private firm of Little and Company under authority of a joint resolution of Congress. During Little and Company's time as publisher, Richard Peters, George Minot, George P. Sanger served as editors. In 1874, Congress transferred the authority to publish the Statutes at Large to the Government Printing Office under the direction of the Secretary of State. Pub. L. 80–278, 61 Stat. 633, was enacted July 30, 1947 and directed the Secretary of State to compile, edit and publish the Statutes at Large.
Pub. L. 81–821, 64 Stat. 980, was enacted September 23, 1950 and directed the Administrator of General Services to compile, edit and publish the Statutes at Large. Since 1985 the Statutes at Large have been prepared and published by the Office of the Federal Register of the National Archives and Records Administration; until 1948, all treaties and international agreements approved by the United States Senate were published in the set, but these now appear in a publication titled United States Treaties and Other International Agreements, abbreviated U. S. T. In addition, the Statutes at Large includes the text of the Declaration of Independence, Articles of Confederation, the Constitution, amendments to the Constitution, treaties with Indians and foreign nations, presidential proclamations. Sometimes large or long Acts of Congress are published as their own "appendix" volume of the Statutes at Large. For example, the Internal Revenue Code of 1954 was published as volume 68A of the Statutes at Large.
Revised Statutes of the United States Procedures of the United States Congress Enrolled Bill Federal Register United States Reports California Statutes Laws of Florida Laws of Illinois Laws of New York Laws of Pennsylvania This article incorporates public domain material from websites or documents of the U. S. Government Publishing Office. How Our Laws Are Made, by the Parliamentarian of the House of Representatives. Volumes 1 to 18 of the Statutes at Large made available by the Library of Congress Volumes 1 to 64 of the Statutes at Large made available by the Congressional Data Coalition via LEGISWORKS.org Volumes 65 to 125 of the Statutes at Large made available by the GPO and the Library of Congress via FDsys Sortable by Bills Enacted into Laws, Concurrent Resolutions, Popular Names, Presidential Proclamations, or Public Laws. Volumes 1–124 of the Statutes at Large made available by the Constitution Society Public and private laws from 104th Congress to present from the Government Printing Office, in slip law format with Statutes at Large page references Early United States Statutes includes Volumes 1 to 44 of the Statutes at Large in DjVu and PDF format, along with rudimentary OCR of the text.
United States Statutes and the United States Code: Historical Outlines, Lists and Sources from the Law Librarians' Society of Washington, DC Second Edition of the Revised Statutes of the United States
Federal Insurance Contributions Act tax
The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, children of deceased workers. Social security benefits include old-age and disability insurance; the amount that one pays in payroll taxes throughout one's working career is associated indirectly with the social security benefits annuity that one receives as a retiree. Kevin Hassett wrote that FICA is not a tax because its collection is directly tied to benefits that one is entitled to collect in life. FICA provides funds to the health care system for institutions that provide healthcare for workers that do not have health insurance and cannot afford healthcare treatment; the United States Supreme Court decided in Flemming v. Nestor that no one has an accrued property right to benefits from social security; the Federal Insurance Contributions Act is codified at Title 26, Subtitle C, Chapter 21 of the United States Code.
In 2004, the Center on Budget and Policy Priorities stated that three-quarters of taxpayers pay more in payroll taxes than they do in income taxes. The FICA tax is considered a regressive tax on income with no standard deduction or personal exemption deduction; the Social Security portion of the tax is imposed on the first $117,000 in 2014, $118,500 in 2015 and 2016, $127,200 in 2017, $128,400 in 2018. The FICA tax is not imposed on investment income such as interest, or dividends. 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. The taxation limit in 2017 was $127,200 of gross compensation, resulting in a maximum Social Security tax for 2017 of $7,886.40. 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; 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.
Because some payroll compensation may be subject to federal and state income tax withholding in addition to Social Security tax withholding and Medicare tax withholding, the Social Security and Medicare taxes account for only a portion of the total an employee pays. The employer is liable for 6.2% Social Security and 1.45% Medicare taxes, making the total Social Security tax 12.4% of wages and the total Medicare tax 2.9%. If a worker starts a new job halfway through the year and during that year has earned an amount exceeding the Social Security tax wage base limit with the old employer, the new employer is not allowed to stop withholding until the wage base limit has been earned with the new employer. There are some limited cases, such as a successor-predecessor employer transfer, in which the payments that have been withheld can be counted toward the year-to-date total. If a worker has overpaid toward Social Security by having more than one job or by having switched jobs during the year, that worker can file a request to have that overpayment counted as a credit for tax paid when he or she files a federal income tax return.
If the taxpayer is due a refund the FICA tax overpayment is refunded. A tax similar to the FICA tax is imposed on the earnings of self-employed individuals, such as independent contractors and members of a partnership; this tax is imposed not by the Federal Insurance Contributions Act but instead by the Self-Employment Contributions Act of 1954, codified as Chapter 2 of Subtitle A of the Internal Revenue Code, 26 U. S. C. § 1401 through 26 U. S. C. § 1403. Under the SE Tax Act, self-employed people are responsible for the entire percentage of 15.3%. It does this by adjusting for the fact that employees' 7.65% share of their SE tax is multiplied against a number that does not include the putative "employer's half" of the self-employment tax. In other words, it makes the calculation fair because employees do not get taxed on their employers' contribution of the second half of FICA, therefore self-employed people should not get taxed on the second half of the self-employment tax. Self-employed people deduct half of their self-employment tax from their gross income on the way to arriving at their adjusted gross income.
This levels the amount paid by self-employed persons in comparison to regular employees, who do not pay general income tax on their employers' contribution of the second half of FICA, just as they did not pay FICA tax on it either. Some student workers are exempt from FICA tax. Students enrolled at least half-time in a university and working part-time for the same university are exempted from FICA payroll taxes if and only if their relationship with the university is an educational one. In order to be exempt from FICA payroll taxes, a student's work must be "incident to" the pursuit of a course of study, rar