Final answer:
True - SS has an income limit, Medicare has no income limit.
Step-by-step explanation:
The statement is true. Social Security (SS) does have an income limit, while Medicare does not have an income limit.
For SS, the payroll taxes are imposed at a rate of 12.4% on wages up to a certain limit. In 2020, this limit was set at $137,700. In other words, individuals only pay SS taxes on the first $137,700 of their wages.
On the other hand, Medicare is funded by a fixed tax rate of 2.9% on all wages earned, without any upper income limit. This means that individuals pay Medicare taxes on their entire income, regardless of how much they earn.