What is the difference between an income tax and a payroll tax?

A. Income taxes are collected based on income while payroll taxes

are collected based on wealth.

B. Income taxes increase the purchasing power of the government

while payroll taxes increase the purchasing power of workers.

C. Income taxes are used for a wide variety of government activities

while payroll taxes pay for specific programs.

D. Income taxes reduce the demand for harmful goods while payroll

taxes don't affect this demand.

Question

Social Studies

Nia

6 July, 09:36

What is the difference between an income tax and a payroll tax?

A. Income taxes are collected based on income while payroll taxes

are collected based on wealth.

B. Income taxes increase the purchasing power of the government

while payroll taxes increase the purchasing power of workers.

C. Income taxes are used for a wide variety of government activities

while payroll taxes pay for specific programs.

D. Income taxes reduce the demand for harmful goods while payroll

taxes don't affect this demand.

+3

Answers (2)

Know the Answer?

Christina Munoz · Answer 1

"Payroll taxes" generally refers to social security tax (6.2% of first 118,000) and medicare tax (1.45% on all earned income). Income tax is based upon all income, both salary and other earned income, and investment income, such as interest, dividends, and capital gains ... because both taxes are taken out of a paycheck.

Explanation:

so i will go with B

Victoria Harding · Answer 2

I am pretty sure the correct answer is C.