The solvency of Social Security can be extended if
A)the retirement age is reduced.
B)the cap on taxable earnings is raised.
C)the trust fund invests in government bonds.
D)the tax rate is reduced.

Question

Quizplus · Accepted Answer

Raising the cap on taxable earnings would increase the amount of money being paid into the Social Security system, thus extending its solvency. Reducing the retirement age or tax rate would decrease the amount of money being paid in, while investing in government bonds may generate some returns but would not address the long-term issue of funding Social Security.

The Solvency of Social Security Can Be Extended If