Health Econ 365Part DPolling reveals people abhor your decision .pdf

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A leader considers raising taxes on the young to $2000 per year to save Medisure and prevent its trust fund from going bankrupt. Raising the retirement age was unpopular so it was lowered. Calculating when the trust fund might go bankrupt if taxes are raised could establish the leader's legacy of saving Medisure.

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Health Econ 365
Part D
Polling reveals people abhor your decision to raise the retirement age and they force you to lower
it again. As a firm leader, you consider raising taxes to $2000 per year on each of the young.
While this is bound to be unpopular in the short run, if you save Medisure, it might establish
your legacy. Will the Medisure trust fund ever go bankrupt now? If so, when? Assume that you
are starting over in 2020
Please show us how you come up with the calculation. Thank you.

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