Under the intermediate set of assumptions of the Medicare Trustees Report, payroll taxes ______ cover the likely increase in Medicare expenses.

Question

Quizplus · Accepted Answer

Under the intermediate set of assumptions, payroll taxes would have to grow substantially to cover the likely increase in Medicare expenses. This is because the projected growth rate of healthcare costs is higher than the projected growth rate of payroll taxes. Thus, without significant increases in payroll taxes, Medicare would not be able to cover its expenses.

Under the Intermediate Set of Assumptions of the Medicare Trustees