Indicate whether the statement is true or false, and justify your answer.In recent years, each year’s Medicare tax receipts have been sufficient to cover that year’s services.
Indicate whether the statement is true or false, and justify your answer.
In recent years, each year’s Medicare tax receipts have been sufficient to cover that year’s services.
Answer -
Medicare Tax Receipts - It is a payroll tax. It is an employee and employer tax, which means that individual must withhold a certain amount from an employee's wages and make a matching contribution.
Now, evaluating the statement -
Medicare tax receipts which help to cover the year's services. But, in some year that medicare tax receipts become insufficient to cover whole year's expenditure.
Example - In the time of economic slowdowns people have less money to spend on medicare or more people become unemployed in recession which lead to decrease in medicare tax.
Which means that statement is not true .
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