Essay
Under one plan for Social Security reform,younger workers would be able to put up to $1,000 of their payroll taxes into an individual retirement account (IRA)in exchange for accepting lower benefits when they retire.However,the supporters of this plan typically offer a method of ensuring that the funds in the IRA are turned into benefits that work in a Social Security-like fashion (e.g.,monthly payments until one dies).
(a)What restriction could policy makers implement to ensure that the money in the IRA would be paid similarly to Social Security?
(b)Why wouldn't policy makers simply allow individuals to accept a lower level of Social Security benefits in exchange for a lower level of taxation without also mandating that individuals put the saved tax funds into an IRA?
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