Suppose the average Social Security benefits (paid to retirees) in the nation are $12,000 per year. The number of social security pension recipients is currently 50 million. There are 150 million workers in the workforce this year and the average taxable wage per worker is $25,000 per year Suppose the number of Social Security recipients increase to 100 million in 20 years, while the number of workers decreases to 100 million. Assuming nothing else changes, calculate the tax rate on wages necessary to pay Social Security benefits in 20 years on a pay-as-you-go basis.

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