Asked by Heather Marie on Jul 09, 2024
Verified
Compared to people earning $150,000 a year,people earning $300,000 pay _________ Social Security taxes.
A) less
B) the same
C) slightly more
D) twice as much
Social Security Taxes
Social Security Taxes are taxes collected from employees and employers to fund the Social Security program, which provides retirement, disability, and survivor benefits.
- Acquire knowledge about the monetary characteristics of Social Security tax and its influence on disparate earning groups.
Verified Answer
AM
alana martinezJul 14, 2024
Final Answer :
B
Explanation :
Social Security taxes are capped, meaning once someone earns above a certain threshold, they no longer pay additional Social Security taxes on income above that limit. Therefore, both individuals earning $150,000 and $300,000 pay the same amount in Social Security taxes, as both incomes exceed the cap.
Learning Objectives
- Acquire knowledge about the monetary characteristics of Social Security tax and its influence on disparate earning groups.