Which of the following statements about the financing of the Social Se

Which of the following statements about the financing of the Social Security program is (are) true?

I. Although the self-employed pay an OASDI tax rate that is twice the employee rate, they are allowed certain deductions that reduce the effective tax rate.
II. The earnings base on which OASDI taxes are paid increases annually based on changes in average wages in the national economy.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: C