Which of the following statements about the financing of the Social Security program is (are) true?
I. Although the self-employed pay an OASDI tax rate that is twice the employee rate, they are allowed certain deductions that reduce the effective tax rate.
II. The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: C
You might also like to view...
If the price of a good is not affected by a tax, then:
a) supply is perfectly elastic. b) demand is unit elastic. c) demand is perfectly elastic. d) the elasticity of supply is greater than elasticity of demand. e) supply is unit elastic.
A firm adopting a selective distribution strategy to sell its products would most likely do so
through a(n) ________. A) grocery store B) luxury-oriented retailer C) supermarket D) company-owned showroom