Author: Anthony J. PellechioPublisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 84
Book Description
Social Security Earnings Test, Labor Supply Distortions, and Foregone Payroll Tax Revenue
Author: Anthony J. PellechioPublisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 84
Book Description
The Social Security Earnings Test, Labor Supply Distortions, and Foregone Payroll Tax Revenues
Author: Publisher:
ISBN:
Category : Older men
Languages : en
Pages :
Book Description
In this study the social security earnings test is shown to have a significant effect empirically on the labor supply of retirement aged men. A rich data file from the Social Security Administration containing accurate benefit information provides a cross- section sample of 65-70 year old married men who worked some amount for empirical investigation. The data pertain to 1972. The results indicate that eliminating the earnings test would increase labor supply by 151 annual hours and payroll tax revenue by $31 per individual in the sample. The way in which the earnings test is relaxed is important also. Raising the exempt amount increased labor supply while lowering the tax rate did not. This follows from analyzing labor supply decisions over a nonlinear earnings-tested budget constraint. An econometric technique was developed for consistently estimating labor supply over nonlinear budget constraints. This technique conveniently summarized the budget constraint in an expected value calculation.
The Social Security Earnings Test, Labor Supply Distortions, and Foregone Payroll Tax Revenue
Author: Anthony J. PellechioPublisher:
ISBN:
Category : Older men
Languages : en
Pages : 98
Book Description
Social Security and Labor Supply Incentives
Author: Roger Hall GordonPublisher:
ISBN:
Category : Income tax
Languages : en
Pages : 28
Book Description
Many provisions of the Social Security Program distort an individual's labor supply incentives. In particular, the payroll tax, the earnings test, the offsetting actuarial adjustment, and the dependence of the size of future benefits on the level of current earnings all affect the net return to extra work. The purpose of this paper is to estimate the size of the net tax rate on labor income in a variety of circumstances, taking into account all these provisions, as well as the personal income tax. We find that the Social Security Program on net in the past has provided a large subsidy to labor supply, which for many people effectively offset the personal income tax. This subsidy rate, however, has been declining steadily over time.
Social Security Rules and Marginal Tax Rates
Author: Martin S. FeldsteinPublisher:
ISBN:
Category : Social security taxes
Languages : en
Pages : 76
Book Description
The social security payroll tax has become the largest tax paid by the majority of American households. Although, the statutory marginal social security tax rate is the same for all those with wage and salary income up to the maximum level, the complex rules linking social security taxes and subsequent benefits imply that the net marginal social security tax on individual earnings varies substantially among individuals. For some taxpayers, the net marginal social security tax is equal to the statutory rate, while for other taxpayers the combined effect of the tax and the resulting benefits implies a very much lower net marginal tax rate or even a negative marginal tax rate when the incremental benefits exceed the additional taxes.
The Labor Supply Effects of the Social Security Earnings Test
Author: Leora FriedbergPublisher:
ISBN:
Category : Old age pensions
Languages : en
Pages : 40
Book Description
The Social Security earnings test reduces benefits at a 33-50% rate once earnings pass a threshold amount - among the highest marginal tax rates in the economy. Previous research dismissed the importance of the earnings test but failed to take advantage of three changes in the earnings test rules in order to identify its impact. Each change applied to some age groups and not others - which make them useful for identifying the effect of tax rules on the labor supply of working beneficiaries. Beneficiaries in the Current Population Survey satisfy the strongest prediction: many keep their earnings just below the exempt amount, and this bunching shifts with the earnings test rule changes. The rule changes are then incorporated into an econometric model of labor supply to identify income and substitution elasticities. The resulting elasticity estimates suggest considerable deadweight loss suffered by working beneficiaries. Simulations predict a substantial boost to labor supply from eliminating the earnings test, and at a minimal fiscal cost. However, a slight decrease in labor supply is predicted from the recently legislated increase in the exempt amount
Social Security Earnings Test
Author: United States. Congress. House. Select Committee on Aging. Subcommittee on Retirement Income and EmploymentPublisher:
ISBN:
Category : Old age pensions
Languages : en
Pages : 200
Book Description
Basic Readings in Social Security
Author: Annotated Readings in Social Security
Author: United States. Social Security Administration. Office of Research and StatisticsPublisher:
ISBN:
Category : Bibliographical literature
Languages : en
Pages : 612
Book Description
Over 2500 references about social security. Classified order. Author, subject indexes.
Report of the 1979 Advisory Council on Social Security
Author: United States. Advisory Council on Social Security (1978-1979)Publisher:
ISBN:
Category : Social security
Languages : en
Pages : 416
Book Description
Hoping to win the return of his two brothers, an Eskimo boy follows the directions of Eagle Mother and learns to dance, sing, and tell stories, so spreading joy throughout the world.