Suggested Social Security reforms include
A)lowering payroll taxes
B)privatizing part of the system
C)raising taxes in order to provide improved benefits
D)eliminating the Trust Fund
E)borrowing from the Treasury to finance a payroll tax cut

Question

Quizplus · Accepted Answer

Privatizing part of the system would involve allowing individuals to invest their Social Security taxes in personal retirement accounts, providing a potentially higher rate of return than the current system. However, this option also carries risks and uncertainties, such as fluctuations in the stock market and potentially leaving some individuals without enough retirement income if their investments do not perform well. The other options listed either involve reducing the funding of the system (such as lowering payroll taxes, eliminating the Trust Fund, or borrowing from the Treasury), or increasing the funding of the system with higher taxes or benefits, which can also have their own drawbacks and implications. Therefore, privatization is a potential reform option that some argue could provide a better balance between individual choice and government support.

Suggested Social Security Reforms Include