mcoleman0310
contestada

Summarize the main issues that are facing Social Security and Medicare, and describe one solution that you would use to address these issues.

Respuesta :

taskmasters
The two major Welfare programs are Medicare and Social Security. These two welfare programs are facing serious issues, the first one is the "legitimacy" which refer to questions "who will benefit and how they will be served". The second issue is "the cost" which refer to questions "Who will pay and how much".
 

Medicare is a healthcare insurance program that helps cover hospital stays, doctor visits, and other medical treatments, and Social Security offers cash assistance. Both are intended to deliver payments to disabled people, help senior citizens, and their families.

The main issue to social security and medicare is worker-to-beneficiary ratio is decreasing:

  • A demographic transition, notably the retirement of baby boomers, is one of the most pressing issues facing Social Security.
  • Between 2010 and 2030, more than 70 million baby boomers are expected to retire, resulting in a significant increase in the number of eligible recipients.
  • The creators of Social Security could not have predicted such a dramatic increase in birth rates.
  • On the downside, there just aren't enough fresh workers in the job force to replace retiring boomers.
  • The worker-to-beneficiary ratio is expected to drop from 2.8-to-1 to as low as 2.1-to-1 between 2015 and 2035.
  • In other words, payroll tax revenue will not be sufficient to cover the rising amount of receiving payments.
  • The solution to the major issues of social security and Medicare are:   Increase Payroll Taxes.
  • This is your contribution to Social Security when you see a deduction for Social Security's Old-Age, Survivors, and Disability Insurance on your paycheck.
  • Self-employed people are responsible for both components of the contribution.
  • Your first $137,700 in earnings will be subject to OASDI payroll taxes in 2020. Your employer, as well as you, will owe 6.2 percent of your paycheck in Social Security payroll taxes.
  • If you work for yourself, you did not only get the pleasure of paying 12.4 percent in taxes per year, but you also have more tax-planning alternatives to keep more of your hard-earned money.

This strategy to save Social Security is quite clear forward; more payroll taxes coming in will imply more money to cover Social Security benefits over time.

For more information related to social security, refer to the link:

https://brainly.com/question/2460666?referrer=searchResults

Otras preguntas