Research by Author & Topic

Publications by Leonard E. Burman on Social Security

Before 1984, Social Security benefits were exempt from income tax. As part of the Greenspan Commission reforms intended to bolster Social Security's finances, up to 50 percent of Social Security benefits became subject to tax in that year, with proceeds from the income tax allocated to the Social Security Trust Fund. In 2004, we estimate that there are more then 28 million households receiving Social Security benefits.

As the nation faces the growing aging population, the authors discuss numerous Social Security reform proposals that would scale back benefits, or use individual savings accounts or increased government and Social Security surpluses to try to increase national saving and, eventually, to replace lost benefits. The authors conclude that proposals should be judged according to their ability to meet various goals or principles. Among the most important are fairness, economic efficiency, and economic growth. More research is needed on the fine points of proposals to fend off a retirement crisis and put Social Security and Medicare on a secure footing. Such research should feed into a national dialogue on Americans' shared retirement future.