7
QuizMultiple Choice

Personal Finance — Test

Question 7 • Personal Finance and Economics

In addition to federal income tax, many people also pay

Answer
A
local social security tax.
B
state income tax.
C
local medicare tax.
D
corporate tax.

Explanation

Many people pay both federal and state income taxes on their earnings. Corporate tax is paid by corporations, while Social Security and Medicare taxes are federal payroll taxes, not local taxes. The correct choice is state income tax.

AI-written and checked against the verified answer.

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