Which of the Following Statements About the Financing of OASDI

question 41

Multiple Choice

Which of the following statements about the financing of OASDI and Medicare is (are) true?
I.There is a maximum taxable wage base for OASDI.
II.There is a maximum taxable wage base for Part A of Medicare.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

---

Definitions:

Value-Added Tax

A consumption tax placed on a product whenever value is added at a stage of production and at the point of retail sale.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Sales Taxes

Taxes imposed by governments on sales of goods and services, typically calculated as a percentage of the sale price.

Digressive

Relating to or denoting a method that reduces in pace or intensity over time or steps, often used in taxation to describe tax rates that increase less proportionally with the amount subject to tax.