The Social Security retirement program is financed by a 10.6 percent payroll tax that applies to earnings up to an income cutoff that is adjusted upward annually by the growth rate of nominal wages. As of 2011, the income cutoff was
A) $15,000.
B) $32,700.
C) $106,800.
D) $250,000.

Question

Quizplus · Accepted Answer

As of 2011, the income cutoff for the Social Security payroll tax was $106,800. This means that workers pay a 10.6 percent tax on earnings up to this amount, but no tax on any additional earnings beyond this cutoff.

The Social Security Retirement Program Is Financed by a 10