Statement I: Most Americans pay more in Social Security tax than in personal income tax.
Statement II: A tax on cigarettes is more regressive than a tax on long distance phone calls.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Social Security Tax

A tax imposed by the government to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Personal Income Tax

A tax levied on individuals or households based on their income, including wages, dividends, and interest.

Regressive

This term usually applies to a tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.