* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, September 29, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Jussie Smollett Claims He Was ‘Disrespected’ on the ‘Special Forces’ Season Premiere – Yahoo

    Jussie Smollett Opens Up About Feeling ‘Disrespected’ During the ‘Special Forces’ Season Premiere

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Why I gave the world wide web away for free | Tim Berners-Lee – The Guardian

    Why I Decided to Make the World Wide Web Free for Everyone | Tim Berners-Lee

    From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

    From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

    How Sustainable Technology is Shaping a Greener Future – Technology Magazine

    How Sustainable Technology is Driving the Revolution Toward a Greener Future

    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Jussie Smollett Claims He Was ‘Disrespected’ on the ‘Special Forces’ Season Premiere – Yahoo

    Jussie Smollett Opens Up About Feeling ‘Disrespected’ During the ‘Special Forces’ Season Premiere

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Why I gave the world wide web away for free | Tim Berners-Lee – The Guardian

    Why I Decided to Make the World Wide Web Free for Everyone | Tim Berners-Lee

    From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

    From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

    How Sustainable Technology is Shaping a Greener Future – Technology Magazine

    How Sustainable Technology is Driving the Revolution Toward a Greener Future

    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Fixing Social Security: Let’s use subsidies for retirement plans

January 23, 2024
in Business
Fixing Social Security: Let’s use subsidies for retirement plans
Share on FacebookShare on Twitter

Andrew Biggs, a conservative economist with the American Enterprise Institute, and I are usually opponents. 

Our disagreements go back decades: including privatizing Social Security, adequacy of retirement income, and compensation of state and local government employees. Just a few weeks ago I thought he was really off base arguing that workers do not pay for their Social Security benefits. 

Read: Social Security’s cost-of-living adjustment for 2025 could be the lowest in five years

Sometimes, however, we see things the same way.  We both have concluded that: 1) the subsidies for private-sector retirement plans do little to increase private saving; and 2) the revenues raised from repealing these “tax expenditures” could be better used to address Social Security’s funding gap.  

The tax expenditures, under the personal income tax, arise because employees can defer taxes on compensation that they receive in the form of retirement savings.  This tax treatment significantly reduces the lifetime taxes of participating employees, relative to saving through an ordinary investment account.  It also cost the government $185 billion in 2020, equal to about 0.9% of GDP. 

Who gets the tax expenditure?  Studies show that 59% of the current tax expenditures for retirement saving flows to the top quintile of the income distribution.  This pattern is not surprising, given that upper-income taxpayers are more likely to have access to employer-sponsored retirement plans, are more likely to participate in their employer’s plan, and contribute more when they do participate. 

Read: This Social Security rule is dead — but spouses still have options

And recent changes will increase the share going to the top quintile.  Expanded “catch-up” contributions benefit only those constrained by the existing limits — roughly 16% of participants.  And increasing the age to 75 for taking required minimum distributions allows participants to take advantage of 4½ more years of tax-free growth.  Generally, only the wealthiest will be able to benefit from this provision.

What do the tax expenditures buy us?  Given that the tax expenditures go overwhelmingly to upper-income households, who face almost no risk of poverty in old age, it is important to ask whether these expenditures accomplish some broader social goal, such as increasing national saving.  

Theory does not provide a strong basis for assuming that the federal tax preferences increase total saving.  Yes, tax preferences make retirement saving more attractive and massive amounts have been accumulated in retirement plans.  But the economists’ lifecycle model suggests that people may simply shift savings from ordinary taxable investment accounts to tax-favored retirement accounts.   

Indeed, the evidence supports the predictions of the lifecycle model.  The definitive 2014 study, using Danish tax data, looked at responses to a reduction in the subsidy for retirement contributions for those in the top tax bracket.  The results show that, for some, pension contributions declined.  But the decline was nearly entirely offset by an increase in other types of saving.  The tax subsidy, in other words, had primarily induced individuals to shift their saving from taxable to tax-advantaged retirement accounts, not to increase overall household saving. 

Given that the tax expenditure for retirement plans is a bad deal for taxpayers, it makes sense to curtail these tax breaks and reallocate the proceeds.  Over the next 75 years, Social Security faces an actuarial deficit of 1.3% of GDP, so applying the revenues from eliminating the tax expenditure would solve 70% of the problem.  And the gains would be higher than this  estimate for two reasons: 1) the government would continue to collect income taxes on past tax-preferred contributions; and 2) payroll tax revenues would be higher as well because they are also affected by the tax preferences. 

In short, let’s move government resources from retirement plans where the incentive does virtually nothing for retirement security to a program that indisputably does: Social Security.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : MarketWatch – https://www.marketwatch.com/story/fixing-social-security-lets-use-subsidies-for-retirement-plans-7f04f0dc?mod=mw_rss_topstories

Tags: businessfixingsocial
Previous Post

Johnson & Johnson’s earnings beat estimates with boost from medtech sales

Next Post

The Fed should resist the temptation to lower interest rates too soon

Governor calls on Congress to extend tax credits to protect affordable health care coverage – NKyTribune

Governor Urges Congress to Extend Tax Credits and Safeguard Affordable Health Care Coverage

September 29, 2025
CNN anchor questions Speaker Johnson about potential government shutdown – CNN

CNN Anchor Challenges Speaker Johnson on Looming Government Shutdown

September 29, 2025
Neighborhood Ecology Corps – RaleighNC.gov

Uncover How the Neighborhood Ecology Corps is Transforming Raleigh

September 28, 2025
A chemistry teacher’s approach to chocolate making: Meet Maram the STEM chocolatier – The Advocate

A chemistry teacher’s approach to chocolate making: Meet Maram the STEM chocolatier – The Advocate

September 28, 2025
The right stuff: New cohort of astronauts recruited by NASA – Digital Journal

The right stuff: New cohort of astronauts recruited by NASA – Digital Journal

September 28, 2025
‘Fallapalooza’ encourages active lifestyle for senior safety – WVIR

Fallapalooza Ignites Senior Spirit for Active and Safe Living

September 28, 2025
Why I gave the world wide web away for free | Tim Berners-Lee – The Guardian

Why I Decided to Make the World Wide Web Free for Everyone | Tim Berners-Lee

September 28, 2025
While chasing DK Metcalf, Isaiah Rodgers reached unprecedented speed – Yahoo Sports

Isaiah Rodgers Hits Unbelievable Top Speed While Chasing Down DK Metcalf

September 28, 2025
Poland bounce back with first ever World Championship bronze – Volleyball World

Poland Triumphs with Historic First-Ever World Championship Bronze in Volleyball

September 28, 2025

Russian Economy Struggles Under Growing Strain of Ukraine Conflict

September 28, 2025

Categories

Archives

September 2025
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Aug    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (842)
  • Economy (862)
  • Entertainment (21,736)
  • General (17,300)
  • Health (9,906)
  • Lifestyle (875)
  • News (22,149)
  • People (864)
  • Politics (873)
  • Science (16,072)
  • Sports (21,362)
  • Technology (15,845)
  • World (844)

Recent News

Governor calls on Congress to extend tax credits to protect affordable health care coverage – NKyTribune

Governor Urges Congress to Extend Tax Credits and Safeguard Affordable Health Care Coverage

September 29, 2025
CNN anchor questions Speaker Johnson about potential government shutdown – CNN

CNN Anchor Challenges Speaker Johnson on Looming Government Shutdown

September 29, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version