Statement I: We could make the Social Security tax less regressive by lowering the wage-base limitation to $25,000.
Statement II: The highest marginal tax rate on the federal personal income tax is 31 percent.

Question

Quizplus · Accepted Answer

Statement I is false because lowering the wage-base limitation to $25,000 would actually make the Social Security tax more regressive, not less, by taxing a smaller portion of higher earners' income. Statement II is false because the highest marginal tax rate on the federal personal income tax is higher than 31 percent; as of my last update, it stands at 37 percent for individuals earning above a certain threshold.

Statement I: We Could Make the Social Security Tax Less