What initiated the need for Social Security taxes?

What initiated the need for Social Security taxes?

• A. The establishment of the Social Security program in 1935
• B. Changes to income tax laws in the 1960s
• C. The introduction of Medicare benefits
• D. The Economic Security Act of 1940

Answer: (A)

The need for Social Security taxes was initiated by the establishment of the Social Security program in 1935. The Great Depression highlighted widespread economic instability and insecurity, leading to widespread poverty among the elderly. In response, the Social Security Act was enacted to provide financial assistance to older Americans and those unable to work due to disability. To fund these benefits, the government implemented Social Security taxes, which would collect contributions from workers and their employers. This program aimed to create a safety net for the aging population and ensure that they could rely on income during retirement. The introduction of these taxes was a foundational step in establishing a program that has become essential to social welfare in the United States.

The need for Social Security taxes was initiated by the establishment of the Social Security program in 1935. The Great Depression highlighted widespread economic instability and insecurity, leading to widespread poverty among the elderly. In response, the Social Security Act was enacted to provide financial assistance to older Americans and those unable to work due to disability. To fund these benefits, the government implemented Social Security taxes, which would collect contributions from workers and their employers. This program aimed to create a safety net for the aging population and ensure that they could rely on income during retirement. The introduction of these taxes was a foundational step in establishing a program that has become essential to social welfare in the United States.