Asked by margaux haguenauer on Jul 02, 2024

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.