Social insurance programs are financed by the personal income tax.

Question

Quizplus · Accepted Answer

Social insurance programs are generally funded through dedicated taxes such as the Federal Insurance Contributions Act (FICA) tax, which is paid by both employees and employers, and the Self-Employment Contributions Act (SECA) tax, which is paid by self-employed individuals. While personal income taxes may contribute to the overall government budget, they are not the primary source of funding for social insurance programs.

Social Insurance Programs Are Financed by the Personal Income Tax