The fact that high-income earners tend to earn a higher percentage of their incomes from rent and dividends, in contrast to low-income earners, makes the payroll taxes

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Payroll taxes are regressive because they are a flat rate applied to all income up to a certain limit, regardless of how much someone earns from other sources such as dividends or rent. Since high-income earners generally receive a greater proportion of their income from dividends and rent, they are not subject to payroll taxes on those earnings, making the overall tax burden disproportionately higher for low-income earners.

The Fact That High-Income Earners Tend to Earn a Higher