Asked by margaux haguenauer on Jul 02, 2024
Verified
Statement I: The primary income sources of the rich are dividends,interest,and profit,none of which is subject to the Social Security tax.
Statement II: The payroll tax is the federal government's fastest-growing source of revenue.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Dividends
The part of corporate profits paid to its shareholders.
Payroll Tax
Taxes imposed on employers or employees, often calculated as a percentage of the salaries that employers pay their staff, funding social security and healthcare programs.
Social Security Tax
A charge imposed on both workers and their employers to finance the Social Security system, offering financial support to retirees, individuals with disabilities, and children of workers who have passed away.
- Delve into the foundations of national treasury inflows and the implications of taxation principles on assorted economic demographics.
- Apprehend the different tax models, like proportional, progressive, and regressive, and grasp their numerous ramifications.
Verified Answer
GP
Gabriell Parker5 days ago
Final Answer :
C
Explanation :
Statement I is true because dividends, interest, and profit, which are common income sources for the wealthy, are not subject to Social Security tax, which primarily taxes wages and salaries. Statement II is also true as the payroll tax, which funds Social Security and Medicare, has been one of the fastest-growing sources of federal revenue, largely due to increases in the wage base subject to the tax and the growth in employment.
Learning Objectives
- Delve into the foundations of national treasury inflows and the implications of taxation principles on assorted economic demographics.
- Apprehend the different tax models, like proportional, progressive, and regressive, and grasp their numerous ramifications.