Select all that apply.
Which of the following statements are true with regard to taxes on wages?
A. Most states do not have a state income tax.
B. Income taxes are imposed by federal, some state, and some local governments to fund government operations.
C. Social Security is imposed to fund federal government programs, such as food stamps and unemployment.
D. Social Security is a tax on wages to fund old-age, survivor, and disability income benefits by the federal government.
Answer (2)
Among the statements about taxes on wages, two are true: income taxes are imposed by federal, state, and local governments, and Social Security taxes fund benefits for old-age, survivor, and disability. The other two statements are false, as most states do have income taxes, and Social Security tax primarily funds Social Security benefits, not other government programs. Understanding these aspects helps clarify the tax system in relation to wages. ;
The true statements regarding taxes on wages include that income taxes are imposed by federal, state, and local governments and that Social Security taxes fund old-age, survivor, and disability benefits. The false statements are that most states do not have an income tax and that Social Security funds programs like food stamps or unemployment. Understanding these concepts helps clarify how different taxes work in the U.S.
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