Question

Social Security (SS) within two decades will need to increase the payroll tax revenues or reduce the benefits paid to retirees, if the Social Security program is to remain financially viable. Proposed policies to address the program’s viability include: increasing the full-benefit retirement age; reducing the rate at which current retirees’ benefits are indexed for inflation; taxing current benefits received by high-income elderly; and increasing the payroll tax wage ceiling. Which two of the four proposals will reduce the social security receipts of current benefit recipients? Why? Which two of the four proposals will increase social security taxes paid relative to benefits received for future retirees? Why?

Answer 1

increasing the full-benefit retirement age;

Definitely increasing full benefit retirement age would decrease the social security receipt of current benefit recipients. Increasing the full benefit retirement age would reduce the time duration in which the specific type of social security is provided to the people.

reducing the rate at which current retirees’ benefits are indexed for inflation;

Reducing the rate at which current retirees benefit index for inflation would decrease the overall receipt of social security provision to the future generation. As it would generate less revenue of the specific type of implementation is done in the respective environment.

taxing current benefits received by high-income elderly;

Definitely this would help the structure to grow prominently as I income Adele you would be paying more taxes that would benefit the specific structure of social security why is use margin.

increasing the payroll tax wage ceiling.

Increasing the payroll tax wage ceiling would decrease the overall impact of available resources for the specific environment can affect the social security badly in terms of future retirees.