Switch every tax to its full rate

Year 4 · IRS; TreasuryDiscuss this step

Task 4.5.1 of 3

Update withholding tables and Form 941 rates.

Who does it

IRS

When

Year 4

Trade-off

Updating withholding at full rates matches revenue to spending but delivers the largest visible tax increase.

Part of: Switch every tax to its full rate

The employer tax reaches 7.5% and the household premium 4.0%. The trust fund starts building its 2-month reserve.