Final answer:
d) 40%
Social Security and Medicare make up a significant portion of the U.S. federal budget. The latest projections indicate funding pressures will increase as the population ages, suggesting a need for policy changes to sustain these programs.
Step-by-step explanation:
The question pertains to how much of the U.S. tax budget is spent on Social Security and Medicare. As of the most recent projections from the Congressional Budget Office in 2021, spending on Medicare and Social Security is anticipated to increase significantly in the coming decades. Currently, these programs make up a large portion of the federal budget. While the exact percentage of the budget allocated to Social Security and Medicare changes annually and is subject to congressional appropriations, historical data and trends indicate that they constitute a substantial portion. The choices provided do not correspond directly to the latest official figures, so to answer this question accurately, one would need to consult the latest budget breakdown from official sources, such as the Congressional Budget Office or the U.S. Treasury.
Long-term budget outlook for these programs is concerning due to an aging population and rising healthcare costs. Currently, the payroll tax levied on workers funds both Social Security and the hospitalization insurance part of Medicare, but projections suggest it won't be sufficient to cover expected costs. Therefore, future options to address this funding shortfall include increasing taxes, cutting other spending, raising the retirement age, or allowing the federal government to sustain large budget deficits.