What are the two types of taxes that working individuals pay on their earnings?

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Quizplus · Accepted Answer

Working individuals typically pay two types of taxes on their earnings - individual income tax and social insurance premium. Individual income tax is a tax levied by the government on the income earned by individuals or entities. Social insurance premium, on the other hand, is a tax that is paid to fund social security programs, such as Medicare and Social Security, which provide benefits to retirees, disabled individuals, and others who may need financial assistance. Option A is incorrect because sales tax is a separate tax that is usually imposed on the sale of goods and services. Option B is incorrect because payroll tax is typically paid by employers and employees, and it is a tax that is used to fund programs such as Social Security and Medicare. Option D is incorrect because property tax is a tax that is levied on the value of properties and is not typically related to individual earnings.

What Are the Two Types of Taxes That Working Individuals