Asked by Mitchel Rozwadowski on Jul 21, 2024
Verified
Which statement is true?
A) Social Security taxes must be paid on all income.
B) Social Security taxes must be paid on all wages and salaries.
C) Social Security taxes must be paid on interest income unless it is tax-exempt.
D) None is true.
Social Security Taxes
Social Security taxes are taxes collected to fund the Social Security program, which provides retirement, disability, and survivorship benefits to eligible Americans.
Income
Money received, typically on a regular basis, for work or through investments.
Tax-Exempt
Refers to entities or financial instruments that are not subject to tax by governmental authorities.
- Acknowledge the diversity in tax structures (regressive, progressive) and their ramifications on different strata of income groups.
Verified Answer
NN
Naturally NahlahJul 24, 2024
Final Answer :
D
Explanation :
Social Security taxes are not paid on all income, but specifically on wages and salaries up to a certain limit. They are not applied to interest income, whether it is tax-exempt or not.
Learning Objectives
- Acknowledge the diversity in tax structures (regressive, progressive) and their ramifications on different strata of income groups.