Question: In 2008, the Social Security (FICA) tax was levied only on incomes up

Question

Question: In 2008, the Social Security (FICA) tax was levied only on incomes up to $102,000. Which of the following statements about this tax is CORRECT?

A) A worker with an annual income of $50,000 and one with an annual income of $100,000 paid the same dollar amount of FICA tax.

B) A worker with an annual income of $200,000 and one with an annual income of $102,000 paid the same dollar amount of FICA tax.

C) The top 20% of income earners earned over 50% of total U.S. incomes in 2001, and they paid approximately 60% of the total FICA taxes collected that year.

D) The percentage of income paid in FICA taxes was the same for a worker with an annual income of $50,000 and a worker with an annual income of $100,000. Previous Next

Explanation / Answer

D) The percentage of income paid in FICA taxes was the same for a worker with an annual income of $50,000 and a worker with an annual income of $100,000.

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