Statement I: The federal corporate income tax is a direct tax.
Statement II: The Social Security tax is a regressive tax.

Question

Quizplus · Accepted Answer

Statement I is true because the federal corporate income tax is levied directly on the income of corporations, making it a direct tax. Statement II is true because the Social Security tax is considered regressive; it takes a larger percentage of income from low-income earners than from high-income earners, due to the income cap on which the tax is levied.

Statement I: the Federal Corporate Income Tax Is a Direct