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Suppose a politician proposes that the solvency of social security be improved by increasing the amount employers pay into the social security program. which approach to the reform of social security is the politician advocating?

A) raising taxes further

B) extending the base of taxable wages

C) raising the retirement age

D) lowering benefits for all recipients

E) lowering benefits for higher-income groups

User Limaaf
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1 Answer

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Final answer:

The politician is advocating for raising taxes by increasing what employers contribute to social security. This approach aims to generate additional revenue for the program without adjusting other aspects like retirement age or benefit levels.

Step-by-step explanation:

When a politician proposes that the solvency of social security be improved by increasing the amount employers pay into the social security program, the approach being advocated is in essence raising taxes. This approach falls under the broad category of increasing revenue for the social security system. It involves either increasing the percentage of the payroll tax or the amount to which it is applied to both employees' wages and employers' contributions.

It's important to note that proposals to reform social security come in various forms. For example, some suggest removing the cap on wages subject to the payroll tax, consequently making those with very high incomes pay more. Others recommend moving towards programs where workers save for their own retirement, creating a shift from the current system in which active workers fund retirees' benefits to one that is more akin to individual savings accounts.

Nonetheless, the specific proposal mentioned in the question does not pertain to altering the retirement age, changing benefits tiers based on income, or adjusting individual savings strategies. Therefore, the correct answer to the question is (A) raising taxes further.

User Maetulj
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