Suppose the average Social Security benefits in the nation are $12,000 per year. The number of social security pension recipients is currently 50 million. There are 150 million workers in the workforce this year and the average taxable wage per worker is $25,000 per year.
Explain how the government could modify the Social Security System, as described, in order to decrease the required tax rate in 20 years.
Total social security pension paid in the next 20 years = 100 million X $ 12,000
Total social security pension paid in the next 20 years = $ 1,200,000,000,000
Total average taxable wages in the next 20 years = 100 million X $ 25,000
Total average taxable wages in the next 20 years = $ 2,500,000,000,000
$ 2,500,000,000,000 X Tax rate = $ 1,200,000,000,000
Tax rate = 48 %
Suppose the average Social Security benefits in the nation are $12,000 per year. The number of...