Asked by Jennifer Marcoccia on Jun 17, 2024
Verified
What percentage of American families pay more payroll tax than they pay in income tax?
A) 40.
B) 60.
C) 75.
D) 80.
Payroll Tax
Taxes that are withheld or levied on an employee's salary by an employer, to be paid directly to the government, typically contributing to social security and healthcare.
Income Tax
A tax levied by governments on individuals or entities based on their income or profit earned.
- Acknowledge the division of income and wealth throughout the United States.
Verified Answer
AA
Aleesha ArmstrongJun 19, 2024
Final Answer :
C
Explanation :
According to a report by the Tax Policy Center, approximately 75% of American households pay more in payroll taxes (such as Social Security and Medicare) than they do in federal income taxes. This is often because payroll taxes are a flat percentage of income, while income taxes are calculated based on taxable income and can be reduced through deductions and credits.
Learning Objectives
- Acknowledge the division of income and wealth throughout the United States.