Long Run Effects of Social Security Reform Proposals on Lifetime Progressivity
Abstract
This paper uses a lifetime framework to address questions about the progressivity of social security and proposed reforms. We use a large sample of diverse individuals from the PSID to calculate lifetime income, to classify individuals into income quintiles, and then to calculate the present value of taxes minus benefits for each person in each group. In our basic calculations, the current system is slightly progressive, overall, on a lifetime basis. Social Security would become slightly more progressive in one of the reform plans, and it would become slightly regressive in each of the other plans. The pattern of progressivity is affected by alternative assumptions, but it is affected in similar ways for the current system and proposed reforms. None of these reforms greatly alters the current degree of progressivity on a lifetime basis.Download Info
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7568.Length:
Date of creation: Feb 2000
Date of revision:
Publication status: published as Julia Lynn Coronado, Don Fullerton, Thomas Glass. "Long-Run Effects of Social Security Reform Proposals on Lifetime Progressivity," in Martin Feldstein and Jeffrey B. Liebman, editors, "The Distributional Aspects of Social Security and Social Security Reform" University of Chicago Press (2002)
Handle: RePEc:nbr:nberwo:7568
Note: AG PE
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Keywords:Other versions of this item:
- Julia Lynn Coronado & Don Fullerton & Thomas Glass, 2002. "Long-Run Effects of Social Security Reform Proposals on Lifetime Progressivity," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 149-206 National Bureau of Economic Research, Inc.
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-02-28 (All new papers)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Laurence J. Kotlikoff & Kent Smetters & Jan Walliser, 2001. "Finding a Way Out of America's Demographic Dilemma," NBER Working Papers 8258, National Bureau of Economic Research, Inc.
- Luís Eduardo Afonso & Reynaldo Fernandes, 2003. "Uma Estimativa dos Aspectos Distributivos da Previdência Social no Brasil," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] f15, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Sabine Jokisch & Laurence J. Kotlikoff, 2005. "Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax," NBER Working Papers 11858, National Bureau of Economic Research, Inc.
- Alan L. Gustman & Thomas L. Steinmeier, 2002.
"The New Social Security Commission Personal Accounts: Where is the Investment Principal?,"
Working Papers
wp031, University of Michigan, Michigan Retirement Research Center.
- Alan L. Gustman & Thomas L. Steinmeier, 2002. "The New Social Security Commission Personal Accounts: Where Is the Investment Principal?," NBER Working Papers 9045, National Bureau of Economic Research, Inc.
- Alan L. Gustman & Thomas L. Steinmeier, 2000.
"How Effective is Redistribution Under the Social Security Benefit Formula?,"
Working Papers
wp005, University of Michigan, Michigan Retirement Research Center.
- Gustman, Alan L. & Steinmeier, Thomas L., 2001. "How effective is redistribution under the social security benefit formula?," Journal of Public Economics, Elsevier, vol. 82(1), pages 1-28, October.
- Alan L. Gustman & Thomas L. Steinmeier, 2000. "How Effective is Redistribution Under the Social Security Benefit Formula?," NBER Working Papers 7597, National Bureau of Economic Research, Inc.
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