The money for Social Security payments to current retirees comes from
A)payroll taxes collected from those retirees when they were working.
B)income taxes collected from the current working population.
C)payroll taxes collected from the current working population.
D)only the interest earned now by the government on the invested Social Security trust fund.

Question

Quizplus · Accepted Answer

Social Security payments are funded primarily through payroll taxes collected from the current working population. When a person works, they pay into the Social Security system through payroll taxes, which are then used to pay benefits to current retirees. The Social Security trust fund, which is invested in government securities, also contributes to funding, but primarily serves as a reserve for future benefits. Income taxes do not directly fund Social Security payments.

The Money for Social Security Payments to Current Retirees Comes