Problem

Choose the best answer to each of the following questions. Explain your reasoning with one...

Choose the best answer to each of the following questions. Explain your reasoning with one or more complete sentences.

Suppose the government collects $100 billion more in Social Security taxes than it pays out in Social Security benefits. Under current policy, what happens to this “extra” $100 billion?

a.    It is physically deposited into a bank that holds it to be used for future Social Security benefits.

b.    It is used to fund other government programs.

c.    It is returned in the form of rebates to those who paid the excess taxes.

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