QUESTION IMAGE
Question
in addition to federal income tax, many people also pay
corporate tax.
state income tax.
local medicare tax.
local social security tax.
Brief Explanations
- Corporate tax is paid by corporations, not individuals, so this option is incorrect.
- State income tax is a tax that many individuals pay in addition to federal income tax, as states can impose their own income tax on residents.
- Medicare tax is a federal tax (along with Social Security tax, forming FICA taxes), not local, so "local medicare tax" is incorrect.
- Social Security tax is also a federal tax, not local, so "local social security tax" is incorrect.
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B. state income tax.