Question

Which of the following statements is positive? Select one: a. Social security benefits are not taxed. b. I am absolutely positive that there is a better way. c. There is a limit to the income each year to which the FICA tax applies, but that is fair, since there is a limit to social security benefits. d. Social security payments to retirees should not be taxed

Answer 1

Option b is the only positive statement. It expresses certainty and hope, unlike the other options that focus on tax specifics for Social Security and Medicare, which differ in how they are applied to varying income levels.

Step-by-step explanation:

Considering the statements provided and the context of taxation related to Social Security and Medicare, the only statement that can be considered positive is option b: "I am absolutely positive that there is a better way." This statement expresses a definitive assertion and a hopeful outlook toward finding a better solution to an unspecified issue. The other statements revolve around the technicalities of taxation, with statement a being incorrect, as Social Security benefits can be taxed, and statements c and d expressing opinions or suggestions rather than positive assertions.

The federal income tax is progressive, meaning that rates increase with income up to a certain level. On the other hand, Medicare is a proportional tax at 2.9% with no wage ceiling, and Social Security taxes are imposed at 12.4% up to a wage limit, but above that, they become regressive, meaning the tax burden decreases as income increases.