Question

Because the payroll tax is _____________, low- and middle-income families have carried the burden for funding increased social spending.

Answer 1

The payroll tax is a regressive tax that places a greater burden on low- and middle-income families for funding increased social spending.

Step-by-step explanation:

The payroll tax is a regressive tax that funds increased social spending. This means that low- and middle-income families bear a larger burden of funding social programs compared to higher-income families. For example, in the United States, workers contribute 7.65 percent of their income to pay for Social Security, but this tax is only applied to the first $118,500 of income. Individuals who earn more than that pay a smaller share of their income in taxes.