27
practice examMultiple Choice

Practice Exam

Question 27 • Personal Finance and Economics

Which is a kind of federal payroll tax?

Answer
A
progressive tax
B
medicare tax
C
property tax
D
sales tax

Explanation

Medicare tax is a federal payroll tax withheld from workers’ earnings and matched by employers. Property and sales taxes are generally state or local taxes, while “progressive tax” describes a way a tax rate can increase with income, not a specific payroll tax.

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