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Some People Argue That Social Insurance Taxes Should Be Increased

Question 41

Multiple Choice

Some people argue that social insurance taxes should be increased to remedy the fiscal problems faced by Social Security.What is a potential problem with this proposed solution?


A) This solution might only be a temporary fix,as it does not address the fundamental issue of a growing elderly population and a shrinking working population.
B) It puts too much of the burden on the middle class and not enough on wealthy households.
C) It would eliminate the need for private savings,thus hurting banks.
D) This solution does not address the fact that the number of retirees is increasing.
E) Payroll taxes cannot be increased high enough to solve the problem.

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