Tax Policy and Social Security’s Future–Two Closely-Tied Topics - Heritage Foundation; AMAC
Earlier this month, the White House presented its Fact Sheet on the proposed budget, part of which focuses on the premise that the spending plan Makes Wealthy People Pay Their Fair Share. Since the issue of taxation typically emerges in the ongoing dialog surrounding Social Security’s long-term financial situation (e.g., the recurring argument to raise or eliminate the taxable maximum for payroll taxes), we note that the Heritage Foundation recently published an analysis of the “fair share” question and offer it as a piece of the overall argument that should be kept in mind. Click here to read the full article.
The analysis by Grover M. Hermann Center Research Fellow EJ Antoni provides a statistical perspective on the distribution of tax liabilities across several thresholds, along with commentary on the relationship between income levels and economic growth. Since the reality of how various segments of the taxpaying public are affected by the rules as they currently exist is an often omitted piece of the discussion, the Heritage analysis becomes an important part in considering how tax rates play into the debate on the future of Social Security’s solvency.