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Mathematics, 22.11.2019 20:31 Dweath50
Amajor concern with social security is the possibility that funds will not be available when today’s tax-payers retire to become beneficiaries. according to the social security trustee’s report, an increase of 1.89% in the social security payroll tax would keep the account full for the next 75 years. to achieve similar results, benefits would have to be decreased from the current 42% of the ending salary to 29% of the salary. cindy is relatively new to the workforce. she has 32 years until she can retire. her current annual salary is $45,000. 1a) calculate how much cindy will have to pay in social security tax (6.2%) based on this salary. 1b) calculate how much cindy will have to pay in social security tax if the tax was increased by 1.89%. 2a) calculate cindy’s annual social security benefit (about 42%) if her salary remains unchanged until she retires (annual average is $45,000). 2b) calculate cindy’s annual social security benefit if her salary remains unchanged but benefits (based on her annual salary of $45,000) were cut from 42% to 29%. 3) if cindy were given a choice between the increase in social security tax now or the decrease in social security benefits when she retires, which would you recommend she choose? explain your answer thoroughly.
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