Social Security Reform: The Politics of the Payroll Tax

51 Pages Posted: 28 Apr 2014 Last revised: 21 Aug 2019

Date Written: December 1, 2013

Abstract

This Article examines the principal reform proposals that would increase tax revenue for the Social Security trust fund — weighing the pros and cons of each. The Article also considers the prospects for political agreement on a reform proposal given the past efforts and the looming crisis.

Part I of the Article recounts the latest data as of 2013 on insolvency projections and discusses the methods by which the Office of the Chief Actuary measures the effect of proposed reforms. Part II provides an overview of the payroll tax and benefit calculations. The factors used in calculating both tax and benefits are key components used in many reform proposals.

The Article focuses on two types of tax reform proposals: (1) proposals that increase the tax rate, which are the subject of Part III; and (2) proposals that increase the maximum taxable income rate, which are discussed in Part IV. Part V examines the political realities of reform proposals and suggests ways in which political bargaining can be structured to maximize the chances of a proposal being adopted.

Keywords: social security, reform, payroll tax, budget crisis, political bargining, H3

JEL Classification: D60, H55, K34, E62, H20

Suggested Citation

Templin, Benjamin A., Social Security Reform: The Politics of the Payroll Tax (December 1, 2013). Quinnipiac Law Review, Vol. 32, No. 1, p. 1, 2013, Thomas Jefferson School of Law Research Paper No. 2377506, Available at SSRN: https://ssrn.com/abstract=2377506

Benjamin A. Templin (Contact Author)

Thomas Jefferson School of Law ( email )

701 B Street
Suite 110
San Diego, CA 92101
United States
619-961-4317 (Phone)

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