What federal program do Social Security and Medicare taxes fund?

The correct answer, benefits for workers and families, accurately reflects the primary purpose of Social Security and Medicare taxes. These taxes are collected from workers and their employers to fund critical programs that provide financial assistance and healthcare for older adults, disabled individuals, and certain families.

Social Security benefits offer retirees, disabled workers, and the survivors of deceased workers a source of income, thus directly supporting workers and their families during times of need. Medicare, on the other hand, provides essential health coverage primarily for individuals aged 65 and older, ensuring that they have access to necessary medical care. Together, these programs play a vital role in the social safety net of the United States, promoting economic stability and well-being for millions.

In contrast, job retraining programs, housing assistance programs, and pension funds for retirees are not directly funded by Social Security and Medicare taxes. Job retraining programs are typically funded through different state and federal initiatives aimed at workforce development. Housing assistance programs use various funding sources, including federal grants and low-income housing tax credits, but they are not a direct outcome of Social Security or Medicare taxation. Pension funds may be supported by employers and employees separately through specific retirement plans, but they do not receive funding from the taxes dedicated to Social Security and Medicare