Macroeconomics 11th Edition by Michael Parkin

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Increase in Payroll Taxes Needed for Social Security
Social Security faces a $5.3 trillion shortfall over the next 75 years, but a congressional report says the massive gap could be erased by increasing payroll taxes paid by both employees and employers from 6.2 percent to 7.3 percent and by raising the retirement age to 70.
a. Why is Social Security facing a $5.3 trillion shortfall over the next 75 years?
b. Explain how the suggestions in the news clip would reduce the shortfall.
c. Would the suggestions in the news clip change the generational imbalance