In the United States,the payroll tax is also called a
A)dividend income tax.
B)social insurance tax.
C)value added tax.
D)capital gains tax.

Question

Quizplus · Accepted Answer

The payroll tax is also known as social insurance tax as it is imposed on both employees and employers to fund various social insurance programs, such as Social Security and Medicare, for the benefit of workers and their families. A dividend income tax is a tax on the income received as dividends from shares of stock; a value added tax is a tax that is based on the value added at each stage of production and distribution of goods and services; and a capital gains tax is a tax on the profit realized from selling an asset such as stocks, bonds or real estate.

In the United States,the Payroll Tax Is Also Called a