I have to write solutions on how to solve the social security problem (the amount to pay retirees will exceed the amount collected to finance the program.)

Question

The solutions are, raising the taxes that finance S.S. and Paying S.S. benefits only to people who earn less than a certain amount of money. I need a pro and con for each. Any help ?

Answer 1

Raising the S.S. taxes on working people will give them less to spend on consumer goods that boost the economy.

Raising S.S. taxes will bring them more into line with the amounts they used to be. The rate in 2013 was the same as it was 24 years ago.

If only people below a certain income receive benefits, this doesn't seem fair to those who paid in more but can't collect.

People with a high income probably don't need social security payments.

Answer 2

Thank you Ms. Sue!

Answer 3

You're welcome, Meghan.