If One Person Earns $20,000 Per Year and Another Person

question 124

Multiple Choice

If one person earns $20,000 per year and another person earns $80,000 per year,they both will pay the Social Security tax ______________________.

• A)at the same average tax rate
• B)but the poorer person will pay at a higher average tax rate
• C)but the richer person will pay at a higher average tax rate
• D)but it is impossible to calculate their individual average tax rates

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