Which of the Following Statements About the Financing of the Social

question 31

Multiple Choice

Which of the following statements about the financing of the Social Security program is (are) true?
I.Although the self-employed pay an OASDI tax rate that is twice the employee rate,they are allowed certain deductions that reduce the effective tax rate.
II.The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.

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

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Definitions:

Industrial Solvents

Chemical substances used in manufacturing processes to dissolve, dilute, or extract other materials without chemically changing either the solvents or the other materials.

U.S. Army Corps

A federal organization responsible for public engineering, design, and construction management, including improvements to natural resources and infrastructure.

Wetlands

Areas of land designated by government agencies as protected areas that support wildlife and that therefore cannot be filled in or dredged by private parties.

Clean Water Act

United States federal law aimed at reducing pollution and protecting the nation’s waterways.