The Social Security System Is Currently Generating Tax Revenues That

question 95

Multiple Choice

The Social Security system is currently generating tax revenues that exceed the benefits paid to recipients. This surplus is

• A) being invested in foreign bonds, which will provide Americans with a source of income when the baby boom generation retires.
• B) separated from other government revenue so politicians will not spend the money during the current period.
• C) being channeled into earmarked private savings accounts.
• D) invested in government bonds, the redemption of which will require an increase in taxes (or additional Treasury borrowing).

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