Implications of increased social security contrib

Implications of increased social security contributions

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Implications of increased social security contributions



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502 DB 4 Name Course Instructor Date Implications of increased social security contributions One of the implications resulting from increased social security contributions is that welfare would be better funded. Employees are likely to have less disposable income, even as the social security contributions rise. Hence, in the short-term employees will have less income to spend and invest, showing that there is a need for adjustments in light of the fall in disposable income. States often intervene to ensure social justice especially through the tax system. Nonetheless, there is also a drawback to higher contributions, since employees are not able to control their investments, and privatization has been

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