Is the social security tax progressive-regressive

Assignment Help Microeconomics
Reference no: EM132471391

The Social Security system is financed by taxes on the wage and salary incomes and the profit incomes of self-employed persons who are currently working and paying into the system. These individuals pay Social Security tax of 6.2 percent on incomes up to roughly $137,700 with a matching payment by their employers. Income above $137,700 is not subject to tax. Benefits are determined by how much a worker paid into the system over his/her working life. Thus the more one pays into the system the higher are the retirement benefits. The system was devised as a program that would provide a minimum retirement income to working persons. It was to be similar to a pension program.

Economic analysts are anticipating Social Security to run out of funds near the year 2036. There are many proposals for reforming Social Security, but only one fundamentally alters the nature of the current system: privatization.

For Critical Analysis:

Is the Social Security tax progressive, regressive, or proportional? Are Social Security transfer payments designed to redistribute income from upper to lower income retirees? What would happen if Social Security were privatized?

Reference no: EM132471391

Questions Cloud

What do economists mean by diminishing returns to input : Have you ever observed this principle at work in a job you've had? Describe how you've experienced this concept in the real world.
What are the best ways of increasing revenue : What are the best ways of increasing your revenue and reducing your cost in the short run. Assume you are in highly competitive market.
ICTICT401 Determine and confirm client business requirements : ICTICT401 Determine and confirm client business requirements Assignment Help and Solution, Academies Australasia - Assessment Writing Service
Optimal long-run production-long-run profits : Determine the optimal long-run production, the long-run profits, and if the variable costs are cut by half, what is the maximum bonus that shareholders
Is the social security tax progressive-regressive : Is the Social Security tax progressive, regressive, or proportional? Are Social Security transfer payments designed to redistribute income from upper to lower
Supplier surplus and the deadweight loss modelled on diagram : If the government imposes a price floor on the market for, say cookies, and agrees to buy up all the excess supply and destroy it
How account for financial loss in order to maintain quality : How do you account for financial losses in order to maintain quality customer service, for example, a restaurant that gives a free meal to an upset customer
How would this policy argentina lm curve this year : How would this policy Argentina's LM curve this year? How would this policy affect Argentina's IS curve this year?
What quantity will be produced by firm using technology 2 : What quantity will be produced by each firm using technology 2? In equilibrium, how many firms using technology 2 will there be in the market?

Reviews

Write a Review

Microeconomics Questions & Answers

  Why do people hold their wealth in the form of money rather

why do people hold their wealth in the form of money rather than another asset that will provide a rate of return

  Discuss the growing disparity of earnings

Discuss the growing disparity of earnings in our society in regards to facing a trade-off between equity and efficiency and what does this have to do with the Ten Principles of Economics?

  In considering materials for a retail package

In considering materials for a retail package (one that will be displayed on the shelf in a retail environment), discuss the advantages and disadvantages of using paper packaging and the advantages and disadvantages of using plastic packaging for thi..

  What is the marginal product of labor

Assume the following Cobb-Douglas production function: . If K = 5, With your answer in (a), can you prove there is diminishing marginal product of labor?

  What is a normal profit and what is an economic profit

What is a normal profit and what is an economic profit? Explain your answer using examples. Are normal profits being earned in this example? Are economic profits present for this firm in this example?  Explain your answers.

  Should each monopoly market be evaluated separately

Do you favor a laissez-faire approach or government intervention and regulation with respect to monopoly What are the benefits of your favored approach, in terms of economic efficiency Is one approach always preferable, or should each monopoly mar..

  Kinesiology

kinesiology

  Niagara region has a demand for generic advertising

Each of 50 golf clubs in the Niagara Region has a demand for generic advertising of Q = 200 - P. Ads cost $3000 each. How many ads will the clubs want to purchase as a group

  Is there evidence of an inverse relationship

Is there evidence of an inverse relationship between the change in the unemployment rate (ΔU) and the change in inflation rate (ΔP)? What is the response of ΔU at time t+1 following a unit shock to ΔU at time t?

  Adequate for current passenger and freight needs

A. The future of airport development. With terrorist-driven declines in air traffic will there be a need for new airports? Are existing airports adequate for current passenger and freight needs?

  Determine what price katrinas candies should charge

Determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.

  What do you mean by the term market equilibrium and why is

what are the differences between real and nominal rates? explain why this is important to induce action on the part of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd