Question

What are the five reform proposals for the social security program?

A) Lowering retirement age, increasing benefits, privatization, means-testing, and reducing payroll taxes
B) Increasing retirement age, reducing benefits, expanding coverage, progressive taxation, and eliminating the program
C) Universal healthcare, reducing military spending, expanding social security, increasing education funding, and lowering the retirement age
D) None of the above

Answer 1

Proposals for reforming Social Security include removing income caps on payroll taxes, establishing saving accounts for workers' healthcare, raising the retirement age, and adjusting payouts or taxes. These measures aim to tackle the funding challenges faced by the program due to demographic changes.

Step-by-step explanation:

Among the proposals for reforming the Social Security program are several key ideas. These include: removing the cap on wages subject to payroll taxes, which means higher-income individuals would pay taxes on the entirety of their income; transitioning to a system where workers save funds over their lifetimes for healthcare post-retirement as opposed to the current system where workers pay for current retirees; raising the retirement age, as suggested by historical responses to Social Security stress; and potentially increasing payroll taxes or reducing payouts to wealthier retirees to ensure the sustainability of the program. These proposals aim to address the challenges faced by Social Security, such as the aging population and the imbalance between the number of people contributing to and drawing from the program.