595) What is the source for the money in the Social Security Trust Fund? What is the long-term concern about the Social Security Trust Fund?

The SSTF gets its money from dedicated taxes and interest paid on the fund’s own investments (the SSTF has invested some of its income into the Treasury, and the interest paid on that investment contributes to the program’s income). It is predicted that in about 20 years the income of the SSTF will fall behind the payouts (to retired/disabled/veterans), thus eventually drying out the program. More test answers on https://studyhippo.com/poli-sci-ch-13/

Which of the following is the major reason why the future of the Social Security Trust Fund is thought to be in financial trouble? a. social security taxes have been cut b. The majority of Americans oppose the program c. the ratio of retired beneficiaries to contributing workers has declined d. Congress has no control over the Social Security program e. none of the above

e. none of the above More test answers on https://studyhippo.com/chapter-16-questions/

What is the source for the money in the Social Security Trust Fund?

Payroll Taxes More test answers on https://studyhippo.com/chapter-13-and-16-govt-test/

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What is Social Security Trust Fund?

The Social Security Trust Fund is a program of the United States government that has been in operation since 1935. It is a vital part of the nation’s social safety net, providing financial security for millions of Americans in retirement, disability and survivors’ benefits. The Trust Fund is funded by payroll taxes on employers and employees, as well as special excise taxes on certain types of earnings. Funds are collected from these sources and invested in US Treasury securities to earn interest income for the trust fund. These funds are then used to pay out benefits to eligible individuals when they reach retirement age. The Social Security Trust Fund has played an important role in helping keep the Social Security system viable over time. In recent years, it has become increasingly important due to the aging population of America and increases in life expectancy. As more people become eligible for retirement benefits at an older age, the trust fund provides additional funds needed to meet their needs. This helps ensure that current generations do not have to bear an unfair burden while still providing adequate support for retired people who have earned their benefits through years of hard work. The Social Security Trust Fund also serves as a buffer against economic downturns or other unexpected events that could significantly reduce revenues going into the system. By investing money collected from payroll taxes into US Treasury securities, it creates a reserve fund that can be used to supplement benefit payments during times when there is not enough revenue coming in from taxes alone. This helps make sure that retirees still receive their full benefits even if there is not enough money coming into the system at any given time because of economic conditions or other issues.