The Social Security system is currently generating tax revenues that exceed the benefits paid to recipients. This surplus is
A) being invested in foreign bonds, which will provide Americans with a source of income when the baby boom generation retires.
B) being invested in government bonds, which will require an increase in general tax revenues when the bonds come due.
C) separated from other government revenue so politicians will not spend the money during the current period.
D) being channeled into earmarked private savings accounts.

Question

Quizplus · Accepted Answer

The Social Security surplus is being invested in government bonds, which means that when the bonds come due, general tax revenues will need to increase to pay them off. This has led to concerns about the long-term sustainability of the Social Security system and the potential for future generations to face significant tax burdens to cover the costs.

The Social Security System Is Currently Generating Tax Revenues That