The FICA tax is levied on employers, employees, and certain self-employed individuals. Revenue goes to Social Security and Medicare. In 2014, the employee's contribution to the retirement part of the FICA tax was 6.2 percent of the first $117,000 earned in wages and salaries. (Medicare is withheld on all wages and tips.) People with income from interest and dividend payments do not have to pay any Social Security tax on this income. What is the tax structure for the income tax over the income range of $0 to $117,000? O Proportional Tax O Progressive Tax Regressive Tax

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The FICA tax is levied on employers, employees, and certain self-employed individuals.
Revenue goes to Social Security and Medicare. In 2014, the employee's contribution to the
retirement part of the FICA tax was 6.2 percent of the first $117,000 earned in wages and
salaries. (Medicare is withheld on all wages and tips.) People with income from interest and
dividend
payments do not have to pay any Social Security tax on this income.
What is the tax structure for the income tax over the income range of $0 to $117,000?
O Proportional Tax
O Progressive Tax
Regressive Tax
Transcribed Image Text:The FICA tax is levied on employers, employees, and certain self-employed individuals. Revenue goes to Social Security and Medicare. In 2014, the employee's contribution to the retirement part of the FICA tax was 6.2 percent of the first $117,000 earned in wages and salaries. (Medicare is withheld on all wages and tips.) People with income from interest and dividend payments do not have to pay any Social Security tax on this income. What is the tax structure for the income tax over the income range of $0 to $117,000? O Proportional Tax O Progressive Tax Regressive Tax
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