Tag: Social Security finances
Abstract The increasing cost of employer contributions for employee health insurance reduces the percentage of compensation that is subject to the payroll tax. Rising insurance contributions can also have a more subtle effect on the Social Security tax base because they influence the distribution of money wages. Workers bear most of the burden of employer…
The brief’s key findings are: Low earners receive much more in Social Security benefits than they pay in Social Security taxes, reflecting the program’s progressive design. The interaction between Social Security provisions and income taxes has little net effect on the program’s progressivity: the exemption of employers’ Social Security contributions from workers’ income taxes makes the system…
