OASDI tax is commonly known as what?

OASDI tax stands for Old-Age, Survivors, and Disability Insurance tax, which is commonly known as Social Security tax. This tax funds the Social Security program, providing benefits to retirees, disabled individuals, and survivors of deceased workers. The OASDI tax is a key part of the Federal Insurance Contributions Act (FICA) and is deducted from employees' earnings. This payroll tax directly supports the Social Security fund, making it vital for the government's ability to provide income assistance to eligible individuals.

The other options relate to different types of taxes. Medicare tax, while related to FICA, specifically funds healthcare for individuals over the age of 65 and doesn't encompass the broader scope of OASDI. Income tax refers to taxes on individual earnings that support various government expenditures, but it is not specifically linked to Social Security. State tax pertains to taxes imposed by state governments, which do not have a direct connection to federal programs like Social Security. Thus, recognizing OASDI tax as Social Security tax is essential for understanding payroll deductions and social insurance programs.