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QUESTION IMAGE

in addition to federal income tax, many people also pay corporate tax. …

Question

in addition to federal income tax, many people also pay
corporate tax.
state income tax.
local medicare tax.
local social security tax.

Explanation:

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.

Answer:

B. state income tax.