Should Social Security rely solely on the payroll tax?

Munnell, Alicia Haydock

Should Social Security rely solely on the payroll tax?

Munnell, Alicia Haydock. “Should Social Security rely solely on the payroll tax?”. Issue in Brief 9-16, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, August 2009. http://hdl.handle.net/2345/bc-ir:104274.

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Abstract

The brief's key findings are: (1) The Social Security payroll tax supports: 1) the cost of current benefits; and 2) the "legacy cost" of paying benefits in excess of contributions to early generations. (2) Covering current costs through the payroll tax gives workers' a sense that they have earned their benefits and provides a stable revenue source. (3) Covering legacy costs, however, means that low- and middle-income workers are paying disproportionately for the benefits of past generations. (4) Shifting legacy costs to the income tax would spread the burden more broadly.

Title: Should Social Security rely solely on the payroll tax?
Author: Munnell, Alicia Haydock
School: Carroll School of Management
Discipline: Finance
Center: Center for Retirement Research
Genre: report
Date Issued: August 2009
Publisher: Center for Retirement Research at Boston College
Series Title: Issue in Brief
Series Number: 9-16
Version Identification: Version of record.
Persistent Link: http://hdl.handle.net/2345/bc-ir:104274
Use Restrictions: These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject: Social Security

Should Social Security rely solely on the payroll tax?

Abstract

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