Unemployment compensation are funded by payroll tax

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Question

The main social insurance programs like Social Security, Medicare, and unemployment compensation are funded by a payroll tax on the earnings of individuals who may receive benefits. Do you think the social insurance programs are effective? How are social insurance programs affected by the socioeconomic and political forces? Make sure to define what the term 'effective' means to you.

Note that these social insurance programs are not only funded by payroll taxes. What are all of the revenue sources utilized to fund them?

Hint- Your employer also makes significant contributions to funding these programs. Consider the fiscal insolvency of some of these programs resulting from our aging population. What are we to do? Research the Bowles-Simpson plan from several years ago. What did they suggest?

Reference no: EM133320028

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