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In 2008, the Social Security Tax Was Levied on Incomes

Question 171

Essay

In 2008, the Social Security tax was levied on incomes only up to $102,000.Which of the following statements about this tax is correct?
A.A worker with an annual income of $50,000 and one with an annual income of
$100,000 would pay the same dollar amount of payroll tax.
B.A worker with an annual income of $200,000 and one with an annual income of

$102,000 would pay the same dollar amount of payroll tax.
C.The top 20% of income earners earned over 50% of total U.S.incomes in 2001, and they paid approximately 60% of the total payroll taxes collected that year.
D.The percentage of income paid in payroll taxes would be the same for a worker with an annual income of $50,000 and a worker with an annual income of
$100,000.

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A worker with an annual income...

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