The Social Security Retirement Program Is Financed by a 10

question 559

Multiple Choice

The Social Security retirement program is financed by a 10.6 percent payroll tax that applies to earnings up to an income cutoff that is adjusted upward annually by the growth rate of nominal wages. As of 2011, the income cutoff was

• A) $15,000.
• B) $32,700.
• C) $106,800.
• D) $250,000.

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Definitions:

Associative Influence

The process through which people are affected by the meanings and implications of nearby or associated concepts and ideas.

Power Base

the sources of influence and authority an individual or organization possesses, such as expertise, control of resources, or personal relationships.

Positive Reinforcement

A principle in behavioral psychology where the introduction of a rewarding stimulus following a desired behavior increases the likelihood of that behavior being repeated in the future.

Salary Increases

The process of raising an employee's pay rate, typically based on factors like performance, inflation, and market rates.