Why can workers with high incomes expect negative returns

Assignment Help Macroeconomics

Reference no: EM13208220

Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security taxes paid into the Social Security trust fund will also be 1%. Why can workers with high incomes expect negative returns on their Social Security taxes during this period?

Reference no: EM13208220

Questions Cloud

Conduct a sensitivity analysis : Assuming that a project has a discount rate of 10 percent, calculate its NPV. Should the project be accepted and conduct a sensitivity analysis. Should the project be accepted now? Why?

Discuss why social security tax rate has increased so much : If the Social Security retirement system was a private retirement system, it would be declared bankrupt. Discuss why this is so and why the Social Security system can continue to pay benefits despite the fact that it can be considered bankrupt.

The maximum work that can be obtained from the expansion : An ideal gas at 300 K has an initial pressure of 15 bar and is allowed to expand isothermally to a pressure of 1 bar. Calculate: the maximum work that can be obtained from the expansion

Create a new group called mygroup : Directions: As you complete each of the following steps, keep track of what occurs at each point, including what you type, the output given, and if you experience any errors.

Why can workers with high incomes expect negative returns : Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security ..

Explain synthesize benzocaine from benzene : synthesize benzocaine from benzene. please explain in detail in only three steps how to achieve this reaction. list NMR, MS and IR peaks for each step.

List the complete reference-source information : List the complete reference-source information for where you found the EIA standard resistor value and tolerance information. 2) How was this reference discovered and where?

How do health care providers control expenditures for health : Use the supply and demand analysis to show how the limit on the amount of reimbursement is not the only effective way to decrease expenditures for health care if health care providers succeed in increasing the demand.

Given the dimensions of a crate : Given the dimensions of a crate (side 1, side 2, and side 3), find the largest surface area it can provide when used as a table. A test case provided is if side 1, side 2, and side 3 are 1, 2, and 3, respectively, the largest surface area is 6. Ca..

User Account

All Pages