Which of the following statements is (are) correct (x) A payroll .docx - Which of the following statements is(are correct(x A payroll tax is a tax on

Which of the following statements is (are) correct (x) A payroll .docx

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Which of the following statements is (are) correct? (x) A payroll tax is a tax on the wages that a firm pays its workers and in the United States the payroll tax is also referred to as a social insurance tax. (y) The payroll tax differs from the individual income tax in the U.S. because the payroll tax is primarily earmarked to pay for Social Security and Medicare. (z) Taxes on specific goods such as cigarettes, gasoline, alcoholic beverages and tires are called excise taxes. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (x) only 13. According to the textbook, which of the following statements is (are) correct? (x) An advantage of a consumption tax over the present income tax system is that a consumption tax discourages consumption and encourages saving. (y) If interest income from savings is taxed, a disincentive to save is created and less saving occurs. (z) An advantage of a consumption tax over the present tax

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