<u>The correct option is (c).
</u>
<u>Local income tax</u> is a type of tax that funds city programs.
Further Explanation:
Local income tax:
Local income tax refers to a collection of taxes for funding the local programs. These taxes are utilized in the progress of making local schools, parks, and community development; theses taxes help in the maintenance of the community places like schools, or hospitals, and many more.
Justification for the correct and incorrect option:
a.
Progressive tax: This option is incorrect.
The progressive tax rate is a tax that increases based on the taxable amount. If the taxable amount increases, the rate of tax also increases. Progressive tax increases from low to high.
b.
Federal income tax: This option is incorrect.
The federal income tax is a tax levied by the United States government and the authorities in the United States. This type of tax is levied based on the income of the people. More the income, more will be the tax.
c.
Local income tax: This option is correct.
The local income tax is levied by the government to maintain the expenses of the local community works like making the schools or the hospitals for the community.
d.
Medicare tax: This option is incorrect.
The Medicare tax is levied for paying the medical expenses of the employee. The tax is equally charged from both the employer and his or her employee.
<u>Therefore, local income tax is a type of tax that funds city programs, and for its maintenance. </u>
Learn More:
1.State income tax
<u>brainly.com/question/2996312
</u>
2.Wealth gap
<u>brainly.com/question/2987205
</u>
3.Credit card
<u>brainly.com/question/3211811
</u>
Answer Details:
Grade: High school
Chapter: Types of tax
Subject: Business studies
Keywords:
Which describes a type of tax that funds city programs, progressive tax, federal income tax, local income tax, and Medicare tax, public parks, hospitals, and schools.
