The current social security program, financed by payroll taxes, is capped at just over US$132,900 of income. This is an example of ______.
A) a regressive tax
B) an unfunded mandate
C) a progressive tax
D) privatization

Question

Quizplus · Accepted Answer

The current social security program is an example of a regressive tax because the payroll tax is only applied to income up to a certain amount, making it a larger burden on those with lower incomes proportionally.

The Current Social Security Program, Financed by Payroll Taxes, Is