what do economics mean when they say social security and medicare are pay as you go...

what do economics mean when they say social security and medicare are pay as you go plans?What are these trust funds?and how long will they have money left in them?What is the key long -run problem for both social security and medicare?

Expert Solution

Rahul Sunny answered 1 year ago

a) How do the pay-as-you-go and fully funded social security systems affect the equilibrium in the...

a) How do the pay-as-you-go and fully funded social security systems affect the equilibrium in the model with interrupted generations? b) In the Fisher two-period model, if the consumer is a saver, consumption in periods one and two are normal goods, and the income effect of an increase in interest rate is greater than the substitution effect, then saving: A) will increase. will decrease. will not change. may either increase or decrease.

From your paycheck, what is a combination you pay towards Social Security and Medicare taxes? Group...

From your paycheck, what is a combination you pay towards Social Security and Medicare taxes? Group of answer choices IRS Income Income Deduction Medicaid FICA Utilities 2. A mutual fund does what? Group of answer choices Allows investors to take advantage of the large gains that are possible in the stock market Provides immediate diversification Is professionally managed Pools together small amounts from a large number of investors All of the answers are correct 3. Most people spend much time...

How the pay as you go social security system increase or may not increase the social...

How the pay as you go social security system increase or may not increase the social welfare and how the fully funded social security system increase or may not increase the social welfare

Suppose a pay-as-you-go social security system where social security is funded by a lump sum tax...

Suppose a pay-as-you-go social security system where social security is funded by a lump sum tax (t1) on the young and on the old. Retirement benefits are given out as a fixed amount b to each old consumer. Can social security work to improve welfare for everyone under these conditions? Use diagrams.

Why are workers willing to accept a pay-as-you-go unfunded plan for Social Security, but not for...

Why are workers willing to accept a pay-as-you-go unfunded plan for Social Security, but not for a private pension plan?

Social Security system is a pay as you go retirement plan. Money taken from workers checks...

Social Security system is a pay as you go retirement plan. Money taken from workers checks is transferred to retirees. At one time there were 42 workers per retiree; today the ratio is now under 3 to 1. By 2030, the ratio is expected to fall to 2 to 1. The only way to keep the current system solvent is to raise taxes on those currently working or cut benefits to those already retired. Neither of these options is particularly...

The tax base for Social Security and Medicare taxes is wages. a. What is the 2019...

The tax base for Social Security and Medicare taxes is wages. a. What is the 2019 total Social Security tax rate? Of this total rate, what is the rate paid by employees? What amount of wages is subject to this tax in 2019? b. What is the 2019 total Medicare tax rate on wages paid by both employers and employees together? What amount of wages is subject to this tax in 2019? Starting in 2013, an additional Medicare Tax of...

This problem is make sure you understand Social Security, Medicare, and Additional Medicare Contribution Taxes. Alice...

This problem is make sure you understand Social Security, Medicare, and Additional Medicare Contribution Taxes. Alice is an employee of XYZ Inc. Alice’s annual compensation is $295,000. Alice’s filing status is married filing jointly. Her federal income tax withholding was $60,000. Answer the following questions: 1. What is the total business deduction for XYZ Inc? 2. What is the total amount of taxes paid on behalf of Alice to the federal government for income taxes and payroll taxes? 3. What...

What does it mean when neoclassical economists say that discriminators are willing to pay to discriminate?

Look up the current 2020 caps for social Security and Medicare? What are they for each ...

Look up the current 2020 caps for social Security and Medicare? What are they for each -Which tax provides for medical benefits? A. FICA tax B. Federal income tax C. Social Security tax D. Medicare tax -Employers use the information on Form W-4 to compute income tax withholding. Net pay A. is more than gross pay. B. is also known as take-home pay. C. is gross pay minus 7.65%. D. depends on how much the employee wants to pay in...

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