The federal government uses the revenue from the FICA (Federal Insurance Contribution Act) tax to pay for A. housing subsidies for low-income people. B. Social Security and Medicare. C. unemployment compensation D. the salaries of members of Congress.

Question

Social Studies

Kallie Cortez

18 June, 11:57

The federal government uses the revenue from the FICA (Federal Insurance Contribution Act) tax to pay for A. housing subsidies for low-income people. B. Social Security and Medicare. C. unemployment compensation D. the salaries of members of Congress.

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Answers (2)

Know the Answer?

Rory Harmon · Answer 1

B. Social Security and Medicare.

Explanation:

The Federal Insurance Contribution Act (FICA) is a U. S law that was passed in 1935 to fund social security and in 1965 a portion of this tax was used to fund the government's Medicare trust fund, this tax is deducted from an employee's and employer's paycheck and it is mandatory. This social security and Medicare deductions are not used solely for the employees or employer but are put into the general fund of the government and are used to pay the retirees, widows in the state.

Tess Branch · Answer 2

B. Social Security and Medicare.

Explanation:

Federal Insurance Contributory Act tax is the money deducted from employed individual which is used to finance social security payments and fund medicare for retired/older Americans.