Tag: social security shortfall
Introduction The U.S. Treasury estimates that the tax preference for employer-sponsored retirement plans and IRAs reduced federal income taxes by about $185-$189 billion in 2020, equal to about 0.9 percent of gross domestic product. Other estimates of the costs are even larger. However, the best evidence suggests that the federal tax preferences do little to…
Benefit/contribution ratios provide no guidance on how to fix Social Security. Two of my friends – Andrew Biggs (“No, Social Security Isn’t Earned”) and Gene Steuerle (“Lifetime Social Security Benefits and Taxes”) are making my brain ache. They are both arguing that people will get lifetime Social Security benefits far in excess of lifetime contributions,…
