Security Policy Options
1a. CBO Problem Statement
The social security options are concerned with the coverage of the retirement’s plans and survivors’ dependents’ payment coverage. The finances allocated for such purposes are derived from the interest on funds’ balances and the payroll taxes thus a need for trust fund’s balance, which will ensure that the outlays for social security are not exhausted by 2030.
1b. CBO Factors aimed at Supporting the Problem Defined
Funding. Employers and employees pay half the finances aimed at benefiting the employees upon retirement while independent workers’ pay the whole amount by themselves, by increasing the payroll tax cap and increasing the social security taxes, CBO can eliminate the social security deficit.
Social Security projections. Raising the retirement age would likely reduce on the Social Security’s funding shortfall since the baby boom generation that is close to benefiting from the retirement age will have been cut significantly.
Trust funds. When the government has less spending policies such as the funds utilized in the retirement benefits plans, it is in a position of borrowing less money from the citizens. However, when the government has many spending expenses as estimated in 2030, it should redeem the securities for cash and in turn pay the benefits to the retirement plan beneficiaries.
1c. CBO Policy Options
Taxable maximum. All employees, either self-employed or under salary and wages payment plan, have to pay social security taxes annually up to the set limit by the law which is termed as maximum taxable earnings. This CBO policy expects a disparity in the coming years in the earning of all the employees before stabilizing hence the law requires an annual indexing on the maximum taxable earnings to match the ever growing average of the salaries paid.
Tax rate. The employers and employees, pay half the funds that are aimed at benefiting during the retirement plan where the money paid forms 12.4 percent of the payroll tax. This policy asserts that several options would change the payroll tax since some of the tax revenues are credited to different funds such as DSI trust fund and OASI trust fund whose percentage allocations may change.
1d. Evaluation Criteria Applied by CBO in its Analysis
- The timing of Implementation. Under the current law governing the retirement benefits plans, a person is entitled to take advantage of the retirement benefits as per the rules that were in force when the person began benefiting from the funds and not the law that is in force when the individual chooses to receive the retirement benefits.
- The scope of options. The options analyzed by CBO are not presented in detailed legislative proposals but are in simple forms hence this reports uses the consideration of different options separately hence avoiding the changes in social security as a result of combined effects.
- Benefits for Spouses and Survivors of Retired Workers. Even though some of the family members cannot benefit from the social security based on their earnings, an eligible spouse who is the primary beneficiary can benefit with up to 50% of finances meant for the primary beneficiary who eligible entitled to take advantage of his or her earnings.
Flu Vaccine Case Study
2a. Core Public Policy Problem
The case study address the issue of vaccines shortage where the demand for the flu vaccine exceeded the supply of the vaccine, which reciprocated in an increase of prices for the vaccine and uneven distribution of the vaccine. According to the CDC, this risk to individuals who are at a high risk of contracting the disease and are not given the vaccine.
2b). Problem Tree
A problem tree is vital in addressing the problem addressed above since it identifies the main problems and explains the effects and causes associated with the problem. The main problem as mentioned in this case study is the shortage of the flu vaccine, which is on a high demand on November and October when the public anticipates the onset of winter. During this time, majority of the people in the population are at a high risk of being infected by the Flu Virus. The compromised groups include the health care workers, adults above sixty-five years, pregnant women, infants between six to twenty-three months and individuals with a weak immune system such as people with chronic conditions. This reveals the high demand for the vaccine. Based on the prices for selling these vaccines, fewer profits are realized. As such, companies opt to manufacture other pharmaceutical drugs rather than the vaccines. Besides, the vaccines are required occasionally, unlike other medicinal drugs. Therefore, there are few manufacturers willing to manufacture the vaccines hence low supply, which raises the problems addressed in the case study. Below is a problem tree formulated from the “five whys” and “five whats” technique.
