Publications -- Social Security

BA #567 – Automatic 401(k)s: A Win for Workers

Congress has made it easier for workers to prepare for retirement by passing the Pension Protection Act of 2006. Most of the media coverage has focused on how the new act will affect corporate defined-benefit pension plans like the one for pilots at Northwest or Delta Airlines. However, the most important and far-reaching features of the bill are provisions that encourage the expansion of such employer-sponsored retirement accounts as 401(k)s and 403(b)s. These reforms - long2007 advocated by the NCPA and the Brookings Institution - are particularly important for younger and future workers. As defined benefit plans dry up, 401(k) plans are becoming the norm.

BA #555 – Taxing the Elderly

The Social Security benefits tax - while nominally a tax on Social Security benefits - is really a tax on other retirement income like pensions or personal savings. And it inflicts some of the highest marginal tax rates in the entire federal tax code.

ST #281 – Social Security Reform: Responding to the Critics

Critics of President Bush’s Social Security reform proposal have used findings by Robert Shiller, professor of economics at Yale University, to suggest that many workers will lose money if they open personal retirement accounts (PRAs), which are a key component of the president’s reform approach.

ST #280 – Will the President’s Proposal Solve Social Security’s Crisis?

The Bush Administration has proposed a two-part Social Security reform plan that would reduce the growth in initial benefit payments awarded to higher earners and allow all younger workers to invest part of their Social Security payroll tax dollars in personal retirement accounts.

ST #275 – Tax and Social Security Reform: Thinking Outside the Box

This study examines the effects of fundamental tax reform as well as combining tax reform with fundamental Social Security reform.

BA #520 – Social Security and Progressive Indexing

President Bush has barnstormed across the country promoting Social Security reform. So far, the president has proposed two primary ideas: 1) Allow younger workers to prefund a portion of their retirement benefits by creating personal retirement accounts equal to 4 percent of wages, and 2) Use "progressive indexing" to reduce the growth in benefits for higher earners.

ST #277 – Reforming Social Security: Lessons from Thirty Countries

Social Security reform in the United States has become a nationally debated topic, but privately managed, funded plans are already a component of the social security systems of more than 30 nations around the world.

BA #514 – Galveston County: A Model for Social Security Reform

The current debate over Social Security reform is reminiscent of the discussions that occurred in Galveston County, Texas, in 1980, when county workers were offered a retirement alternative to Social Security: At the time they reacted with keen interest and some knee-jerk fear of the unknown. But after 24 years, folks here can say unequivocally that when Galveston County pulled out of the Social Security system in 1981, we were on the road to providing our workers with a better deal than Franklin Roosevelt’s New Deal.

BA #513 – Social Security Reform: The Cost of Delay

Just how big is the funding shortfall faced by Social Security? What is the cost of delay in implementing a solution? The magnitude of the problem can be quantified in two ways: 1) the funds required each year in addition to projected payroll tax revenues, or 2) the present value of the total additional funding required in all future years.

BA #512 – What We Can Learn from the British Experience with Personal Accounts

Britain has used personal accounts in its public pension system longer than any other industrial country. Personal accounts fund individual workers’ retirement benefits through savings, whereas pay-as-you-go systems, including the U.S. Social Security system, fund elderly benefits from current workers’ taxes. The U.K. experience provides a good model of how not to do things in America. It shows that personal accounts can be good or bad, depending on how they are designed.