13
QuizMultiple Choice

Personal Finance — Test

Question 13 • Personal Finance and Economics

A federal payroll tax that supports retired workers is

Answer
A
sales tax.
B
social security tax.
C
corporate tax.
D
progressive tax.

Explanation

The federal payroll tax that funds benefits for retired workers is the Social Security tax. It is collected from workers’ paychecks and helps finance Social Security retirement benefits. Corporate taxes are paid by businesses, sales taxes are generally paid on purchases, and “progressive tax” describes a tax structure rather than this specific payroll tax.

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