Which is not true of current U.S.payroll taxes?
A)They are used to fund Social Security.
B)They account for about 35 percent of federal revenues.
C)They are proportional taxes because there is only one listed tax rate.
D)They are levied on wages and salaries but not investment income.

Question

Quizplus · Accepted Answer

Payroll taxes in the U.S. are not purely proportional because they include a cap on the amount of income subject to Social Security taxes, making them regressive at higher income levels. Different rates apply to different portions of income, and not all income is taxed at the same rate.

Which Is Not True of Current U.S.payroll Taxes