FSAs and HSAs Provide Tax Advantages for Health Expenses

question 11

True/False

FSAs and HSAs provide tax advantages for health expenses.

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Definitions:

Progressive Structure

A tax system where the tax rate increases as the taxable base amount increases, often applied to income tax.

Income-tax System

A government system for assessing and collecting taxes on the income of individuals and businesses.

Ability-to-pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's capacity to pay, typically measured by income or wealth.

U.S. Labor Force

The total number of people in the United States who are employed or actively seeking employment.