Which of the following does FICA contributions finance?

Which of the following does FICA contributions finance?

• A. Foreign aid
• B. Public education
• C. Social Security benefits
• D. Local infrastructure

Answer: (C)

The correct answer is C, as FICA contributions specifically fund Social Security benefits, which include retirement, disability, and survivor benefits. Under the Federal Insurance Contributions Act, employees and employers contribute a portion of wages to support this program, ensuring that eligible individuals receive financial assistance when they retire or if they become disabled. The purpose of FICA is to provide a safety net for American workers and their families, making it crucial in maintaining the Social Security program's sustainability. It is important to note that while the contributions collected under FICA also include funding for Medicare, the question specifically focuses on Social Security benefits, which is primarily what these contributions support. Other options do not align with FICA contributions. Foreign aid, public education, and local infrastructure funding come from different tax revenue sources, which are not directly related to the FICA contributions collected from employers and employees for Social Security and Medicare. Thus, they are not applicable in the context of this question.

The correct answer is C, as FICA contributions specifically fund Social Security benefits, which include retirement, disability, and survivor benefits. Under the Federal Insurance Contributions Act, employees and employers contribute a portion of wages to support this program, ensuring that eligible individuals receive financial assistance when they retire or if they become disabled.

The purpose of FICA is to provide a safety net for American workers and their families, making it crucial in maintaining the Social Security program's sustainability. It is important to note that while the contributions collected under FICA also include funding for Medicare, the question specifically focuses on Social Security benefits, which is primarily what these contributions support.

Other options do not align with FICA contributions. Foreign aid, public education, and local infrastructure funding come from different tax revenue sources, which are not directly related to the FICA contributions collected from employers and employees for Social Security and Medicare. Thus, they are not applicable in the context of this question.