20
QuizMultiple Choice

Personal Finance — Test

Question 20 • Personal Finance and Economics

Social security and medicare are

Answer
A
payroll taxes.
B
local taxes.
C
progressive taxes.
D
corporate taxes.

Explanation

Social Security and Medicare are funded in large part by taxes collected from workers’ paychecks and paid by employers. Because these taxes are tied to wages, they are called payroll taxes; they are not local or corporate taxes.

AI-written and checked against the verified answer.

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