Question

question 1 / 1
what solutions are presented to fix the social security shortfall? (hint: choose three correct answers)

a. stop distributing benefits to workers who do not pay into the system

b. reduce benefits to match income from payroll taxes

c. increase the social security tax rate

d. raise the age of retirement for younger workers

Explanation:

• Option A: Stopping benefits to non - contributing workers can help balance the system as it reduces outflows.
• Option B: Reducing benefits to match payroll tax income ensures that the outgo doesn't exceed the inflow, helping to fix the shortfall.
• Option C: Increasing the Social Security tax rate increases the inflow of funds, which can address the shortfall.
• Option D: Raising the retirement age for younger workers means they contribute for longer and receive benefits for a shorter period, helping to sustain the system. But we need to choose three. Among these, B, C, D are common solutions. (Note: Different sources might have slight variations, but generally, reducing benefits (B), increasing tax rate (C), and raising retirement age (D) are widely recognized solutions to Social Security shortfall. Option A is less likely as a mainstream solution as there are many who receive benefits without direct payroll tax contribution (like spouses, dependents) due to the nature of the Social Security system.)

Answer:

B. Reduce benefits to match income from payroll taxes
C. Increase the Social Security tax rate
D. Raise the age of retirement for younger workers