Question

FICA taxes are considered to be:

a. proportional.

b. progressive.

c. flat.

d. regressive.

Answer 1

FICA in simple terms is the the federal payroll tax

its full form is Federal insurance contribution act

It is generally paid by the workers

It will come under the progressive tax system because all the corporate and estate taxes

A progressive tax are those taxes in which as the income rises the tax paying is also increased

In proportional tax system the tax is always constant whether the income decreases or increases

In regressive tax system the tax paid decreases as the income of a consumer rises

So the correct answer here is option B