The Social Security tax is a tax on
A) capital.
B) labor.
C) consumption expenditures.
D) earnings during retirement.

Question

Quizplus · Accepted Answer

The Social Security tax is a tax on the earnings (or income) of individuals who work for an employer. The tax is levied on both the employee and the employer, and is used to fund the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals. Therefore, the Social Security tax is a tax on labor rather than capital, consumption expenditures, or earnings during retirement.

The Social Security Tax Is a Tax on