Statement I: A progressive tax places a heavier burden on the rich than on the poor.
Statement II: The Social Security tax is more regressive than the federal personal income tax.

Question

Quizplus · Accepted Answer

Both statements are true. A progressive tax, by definition, imposes a higher tax rate on higher-income earners, thus placing a heavier burden on the rich than on the poor. The Social Security tax is considered regressive because it caps the amount of income subject to taxation, meaning higher-income earners effectively pay a lower percentage of their total income in Social Security taxes compared to lower-income earners.

Statement I: a Progressive Tax Places a Heavier Burden on the Rich