Teaching Note: Let's Stop Professing That the Legal Incidence of the Social Security Tax Is Irrelevant

The U.S. Social Security levy is widely used by economists to illustrate the irrelevance of legal tax incidence for economic incidence. However, the levy's magnitude in conjunction with an asymmetry in the U.S. federal income tax code make the levy's legal incidence highly relevant for its economic incidence. The legal incidence of the social security levy is irrelevant only to workers who are disinterested in large variations in take-home pay.

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Year of publication:	2000
Authors:	McClure, James E. ; Cott, T. Norman Van
Published in:	Eastern Economic Journal. - Eastern Economic Association - EEA, ISSN 0094-5056. - Vol. 26.2000, 4, p. 483-486
Publisher:	Eastern Economic Association - EEA
Subject:	Incidence \| Income Tax \| Social Security \| Tax Incidence \| Tax

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Extent:	application/pdf
Type of publication:	Article
Classification:	H55 - Social Security and Public Pensions ; H24 - Personal Income and Other Nonbusiness Taxes and Subsidies ; H22 - Incidence
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005769888