How does the government fund Social Security payouts, Medicare benefits, veterans' benefits, and other entitlements that must be paid to those who qualify to receive them?

Question

Quizplus · Accepted Answer

These types of programs are known as mandatory spending because the government is obligated to provide the benefits to those who qualify for them, regardless of the annual appropriations process. These programs are typically funded through payroll taxes, which are collected from workers' paychecks and deposited into trust funds that cover the costs of these programs.

How Does the Government Fund Social Security Payouts, Medicare Benefits