a) Many policy solutions exist for improving the financial outlook of social securitys retirement program including increasing payroll taxes , raising the full retirement age , reducing initial benefits , and adjusting benefits after retirement . proposals to put social security finances on a long term sustainable footing include
i) options to increase social securitys payroll tax revenues
Raise the payroll tax rate from its current level of 12.4% on wage earnings subjects to the tax.in 2018 earnings up to $128400 are taxed
ii) options to increase the retirement age and index it to increase in longevity
full retirement age varies ,it is currently 66 years and 4 months for those eligible to retire in 2018 and is slated to rise to 67 years old for those born in 1960 or later .some propose increasing the retirement age above age 67 for younger cohorts to account for future gains in average longevity
b) The federal Government has sponsored health insurance programs such as Medicare as well as the medicaid .Medical insurance for the elderly , disabled ,as well as low income Americans are covered by these insurance programs . In 1965 ,these programs took effect and the Health care Finance Administration or the HCFA ,of the department of Health and human services administered these programs .Health care coverage is provided by the US government to a variety of groups such as federal employees ,military personnel , veterans as well the native Americans .However ,the largest proportion of health care expenditure is accounted by the Medicare as well as Medicaid programs
From the above a and b we can determine some points
social security retirement and medicare are funded primarily through the collection of payroll taxes .Because of demographic and economic factors , fewer workers are paying into social security and Medicare than in the past ,resulting in decreasing income from the payroll tax .the strain on the trust funds is also worsening as large numbers of baby boomers reach retirement age,Americans live longer ,and health care costs rise.
What is the problem facing the Social Security Retirement program? What is the problem facing the...
Which of the following statements about Medicare and Social Security are false? Choose one or more: A. Medicare and Social Security represent about 10% of total federal government spending. B. Medicare is a program that provides health care to the poor and to the elderly. C. Medicare and Social Security are mandatory outlays. D. Social Security and Medicare are social insurance programs. E. Spending on Medicare and Social Security has increased dramatically as the population has gotten older.
Social Security should serve as a foundation for employee retirement programs. Therefore, Congress should explore more extensive revisions to the program to ensure that the next generation of retirees will receive the benefit.” Do you agree or disagree with this statement? Explain your response
Would you favor privatization of the Social Security retirement program, as other countries have done? Explain
Moral hazard with Social Security O does not exist because the Social Security program is not means-tested O arises because Social Security may lead people to retire at different times than they would in the absence of Social Security. is counterbalanced by the adverse selection effect in Social Security. arises because the Social Security benefits you receive in retirement are not a function of your pre-retirement O o earnings. None of the above. Question 15 1 pts The consumption-smoothing benefits...
Problem 5: Social Security. Discuss the validity of the following claims about Social Security. Determine whether each claim is True or False and present a concise explanation for your answer: 1. Social Security is inefficient because workers are capable of saving for retirement on their own 2. Social Security incentivizes workers to retire as early as possible since this allows them to receive more benefits payments. 3. Social Security is constructed so that it always redistributes wealth from low earners...
Social security and Medicare tax for 2019.The social security tax rate is 6.2% each for the employee and employer, unchanged from 2018. The social security wage base limit is $132,900.The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2018. The wage base limit for Medicare tax is?
Which of the following government programs existed before the start of the Great Depression? Social Security none of these. There was no federal social safety net. Medicare federal welfare payments unemployment insurance
All of the following statements regarding the Social Security system are correct EXCEPT: the law allowing Social Security taxes to be deducted from workers' paychecks is the Federal Insurance Contributions Act the federal Old-Age and Survivors Insurance Trust Fund pays retirement and survivors benefits the two Medicare trust funds are the federal Hospital Insurance Trust Fund for Part A, and the Supplementary Medical Insurance Trust Fund for Part B the Medicare trust funds are not expected to be exhausted anytime...
As a nation, we are faced with a serious dilemma over financing Social Security and Medicare/Medicaid while, at the same time, advances in medicine are prolonging life. Research with gene manipulation shows promise of extending life significantly beyond current mortality tables. Hence, the Methuselah problem: extending life while financing it at the same time. Should we extend life when we are already experiencing problems caring for the elderly? Should we eliminate retirement or raise the age of retirement?
The cost per housenold () for various benefit programs for a particular group of people in a Cost ($) 150,657 13,188 22,090 284.886 Category Civil servant retirement Ho Compute the percentage of values in each category. b. What conclusions can you reach concerning the benefit programs? Medicare Military retirement Social Security Other 8,440 a. Complete the table below. Cost per Household (S) Category Percentage (%) Civil servant retirement 150,657 % 13,188 Medicare Military retirement 22,090 Social Security 284,886 % %...