Revenue Estimates and Retirement Policy: The Need to Consider Present-Value Estimates of Changes in Tax Policy
Report for The Actuarial Foundation, American Society of Pension Professionals & Actuaries, Profit Sharing/401k Council of America, U.S. Chamber of Commerce, The ESOP Association, Committee on Investment of Employee Benefit Assets, National Conference on Public Employee Retirement Systems, National
40 Pages Posted: 5 Aug 2011
Date Written: March 2008
This report explores the problem with cash-flow accounting for estimating the revenue costs of retirement savings proposals and shows how a present-value analysis similar to what is used to evaluate federal credit programs and in the president’s budget for the preparation of tax expenditure estimates might provide a more accurate estimate of the long-term revenue effect of deferral proposals.
Keywords: tax expenditures, retirement, savings, 401(k), pension
JEL Classification: E21, H20, H21, H29, H50, H59
Suggested Citation: Suggested Citation