This paper examines the efficiency gains from linking marginal Social Security benefits to marginal Social Security … taxes provided no marginal Social Security benefits or were incorrectly perceived to provide nomarginal benefits, the … distortionary taxation rise as roughly the square of the tax rate, the Social Security payroll tax may be more than doubling the …

In an earlier paper we analyzed a method of combining traditional tax financed pay-as-you-go Social Security benefits … retirement income projected in current Social Security law while avoiding a future increase in the payroll tax rate. The current … retirement. (4) We update the statistical basis for our estimates to be consistent with the 2000 Social Security Trustees Report …

As currently legislated, the U.S. Social Security System represents a bad deal for postwar Americans. Of every dollar … bonds, and the OASI return is much riskier. Of course, Social Security is an insurance as well as a net tax system. But …, et al. (1999), assume that current law can be maintained through time. But Social Security faces a staggering long …