Asked by Tommy Grias on Jun 01, 2024
Verified
The U.S.income tax is _____,while the FICA tax is _____.
A) progressive;progressive
B) progressive;regressive
C) regressive;progressive
D) regressive;regressive
U.S. Income Tax
A tax imposed by the U.S. government on the income generated by businesses and individuals within its jurisdiction.
FICA Tax
A federal payroll tax in the United States that funds Social Security and Medicare programs.
Progressive
A term that may refer to a system or policy where the rate increases as the taxable amount increases, often used in the context of taxation or a general approach promoting change or innovation.
- Gain familiarity with the ideas surrounding progressive, regressive, and proportional taxation systems.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
B
Explanation :
The U.S. income tax is a progressive tax, which means that the more you earn, the higher percentage of your income you pay in taxes. In contrast, the FICA tax is regressive because it is a flat percentage that is applied to all earned income up to a certain limit, regardless of how much money is earned in total. This means that those with lower incomes end up paying a larger percentage of their income toward FICA taxes than those with higher incomes.
Learning Objectives
- Gain familiarity with the ideas surrounding progressive, regressive, and proportional taxation systems.