Social Security and the American Family
This paper presents the results of a computer simulation of the expected present value of benefits, taxes, and transfers, rates of return, and marginal linkage of benefits and taxes for persons of different income levels and family status. A number of important issues associated with the "deal" and incentives projected to be offered by the current social security system for different family situations are treated: married versus single persons, number of earners in the family and the division of earnings between them, and the special situation of widows and divorcees. The results show tremendous variation for different family situations and often dwarf amounts at stake for most families in the recent debates over income tax reform. We pay particular attention to items such as marriage penalties and subsidies, incentives to postpone divorce and low marginal linkage of expected benefits to incremental taxes paid by women, whether as second earners in a family, divorcees or widows.
|Date of creation:||Jan 1987|
|Date of revision:|
|Publication status:||published as Boskin and Puffert, "Social Security and the American Family," in Economics of Tax Policy, Lawrence Summers, ed., Cambridge, MA: MIT Press, 1987.|
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- Feldstein, Martin & Liebman, Jeffrey B., 2002.
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324
- Thompson, Lawrence H, 1983. "The Social Security Reform Debate," Journal of Economic Literature, American Economic Association, vol. 21(4), pages 1425-67, December.
- Michael J. Boskin & Marcy Avrin & Kenneth Cone, 1980. "Modeling Alternative Solutions to the Long-Run Social Security Funding Problem," NBER Working Papers 0583, National Bureau of Economic Research, Inc.
- Michael J. Boskin & Marcy Avrin & Kenneth Cone, 1983. "Modeling Alternative Solutions to the Long-Run Social Security Funding Problem," NBER Chapters, in: Behavioral Simulation Methods in Tax Policy Analysis, pages 211-246 National Bureau of Economic Research, Inc.
- Michael D. Hurd & John B. Shoven, 1985.
"The Distributional Impact of Social Security,"
in: Pensions, Labor, and Individual Choice, pages 193-222
National Bureau of Economic Research, Inc.
- Alan J. Auerbach & Laurence J. Kotlikoff, 1985. "The Efficiency Gains from Social Security Benefit - Tax Linkage," NBER Working Papers 1645, National Bureau of Economic Research, Inc.
- Michael J. Boskin & Laurence J. Kotlikoff & Douglas J. Puffert & John B. Shoven, 1986. "Social Security: A Financial Appraisal Across and Within Generations," NBER Working Papers 1891, National Bureau of Economic Research, Inc.
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