Question

match each type of tax with its correct description
medicare tax
used to support healthcare costs for retired workers
local income tax
collected from workers in most states
social security tax
collected by towns and cities to fund city programs
state income tax
collected from most workers, who pay up to 39.6 percent of their earnings
federal income tax
used to provide financial support to retired and disabled workers

Explanation:

• Medicare tax: Used to support healthcare costs for retired workers. This tax is specifically earmarked for Medicare, which provides health insurance for the elderly.
• Local income tax: Collected from workers in most states (administered at the local level, so towns/cities collect it to fund local programs).
• Social Security tax: Used to provide financial support to retired and disabled workers. Social Security is the program that offers retirement and disability benefits.
• State income tax: Collected from workers in most states (state - level income tax, so "collected from workers in most states" matches).
• Federal income tax: Collected from most workers, who pay up to 39.6 percent of their earnings (the federal income tax has progressive rates, with a top rate that was 39.6% at some points).

Answer:

• Medicare tax: used to support healthcare costs for retired workers
• Local income tax: collected by towns and cities to fund city programs
• Social Security tax: used to provide financial support to retired and disabled workers
• State income tax: collected from workers in most states
• Federal income tax: collected from most workers, who pay up to 39.6 percent of their earnings