25-6. Which of the following is a fundamental distinguishing feature of individual income taxes compared with payroll taxes? a. Individual income taxes are applied to a more narrowly defined set of income sources. b. Individual income taxes are applied in many cases to the entire income of a family. c. Individual income taxes are the primary means of financing social insurance programs. d. Individual income taxes are applied only on income earned up to a maximum value.

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Business

Hayley Ayala

6 April, 09:40

25-6. Which of the following is a fundamental distinguishing feature of individual income taxes compared with payroll taxes? a. Individual income taxes are applied to a more narrowly defined set of income sources. b. Individual income taxes are applied in many cases to the entire income of a family. c. Individual income taxes are the primary means of financing social insurance programs. d. Individual income taxes are applied only on income earned up to a maximum value.

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Dean Bauer · Answer 1

Answer: Individual income taxes are applied to a more narrowly defined set of income sources.

Explanation:

An individual income tax is a tax that is imposed by the governments on the income that is generated by individuals within the state. By law, all taxpayers must file the income tax return yearly to determine their tax obligations.

Payroll tax is the tax paid on the wages and salaries of the employees and they are used to finance social insurance programs, like Social Security and Medicare.

The difference is that the inividual income taxes are more narrowly defined set of income sources. Payroll is one of the sources of income while, the individual income is made up of other sources like rents, and the income from other business.