If the government reduced marginal tax rates on Social Security receipts to zero, A.All retirees would...

If the government reduced marginal tax rates on Social Security receipts to zero,

A.All retirees would receive full benefits.

B.Output from older workers would decrease.

C.Payroll taxes for the program would decrease.

D.The financial cost of the program would decrease.

Expert Solution

Option A

A.All retirees would receive full benefits.

the taxes decreases to zero on the social security payment s so the retirees would get full payments and it increases the cost of the program and there is no change in the production as the retirees are not in the labor force.

Rahul Sunny answered 2 years ago

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