Which of the following proposals to reform Social Security financing would lead to increased revenues to the program?
A) increasing the retirement age
B) reducing or delaying cost-of-living adjustments
C) lifting the cap on the amount of wages subject to the Social Security tax
D) privatization of investments

Question

Quizplus · Accepted Answer

Lifting the cap on the amount of wages subject to the Social Security tax would increase revenues to the program by requiring higher income earners to pay Social Security taxes on more of their income. Option A would save money by reducing the number of people collecting benefits, while Option B would save money by reducing the increase in benefits paid out. Option D would not necessarily increase revenues to the program, as it would involve diverting funds away from the Social Security trust fund and into private investments.

Which of the Following Proposals to Reform Social Security Financing