Final answer:
The economist's proposal to include more work under Social Security enrollment aims to extend the taxable wage base and increase funds for the system. Discussions on Social Security reform include various potential changes like lifting the payroll tax cap or shifting to a savings-based system. Option B is correct.
Step-by-step explanation:
The economist proposing to improve the finances of the Social Security system by mandating that work currently excluded from Social Security must enroll is advocating for extending the base of taxable wages.
This means including more types of work in the pool of employment subject to Social Security taxes, thus potentially increasing the amount of funds available for the system. This approach would not directly involve raising taxes, increasing retirement age, or decreasing benefits, but rather expanding the range of income that is subject to Social Security taxation.
Current proposals related to Social Security include removing the cap on wages subject to the payroll tax, allowing high-income earners to be taxed on their entire income, and shifting from the current system of using worker's taxes to pay retirees, to a savings-based system where individuals save funds over their lifetime to be drawn out after retirement for healthcare needs.
Understanding who bears the burden of Social Security taxes, how it affects the labor supply, and the potential adjustments for addressing funding challenges such as increasing the retirement age or altering benefit levels are essential aspects of these ongoing discussions.