Tax Considerations in a Universal Pension System (UPS) (Discussion Papers)
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The inadequacy of the current U.S. public and private pension systems may warrant the establishment of a universal pension system (UPS), which would cover all workers—full-time and part-time—and require them to contribute at a level that can help provide them with adequate incomes when they retire. This paper develops options for a system of individual accounts to which, starting in 2007, each employee or self-employed worker would be required to contribute 3 percent of covered payroll (i.e., 3 percent of up to $97,500 in 2007). The UPS we describe would raise the total "replacement rate" for average wage men to 49.0 percent of final wages—provided Social Security is fixed—or 39.8 percent if not
Making America Work (Book)
|Posted to Web: December 20, 2007||Publication Date: December 20, 2007|
Work. Hard work! And plenty of it. That is what has made the United States into the world's foremost economic superpower. But while we Americans value and respect work, we are also concerned about economic justice. We like to see all workers earn a fair day's pay for a fair day's work. And we like having a safety net to catch those who cannot compete successfully in our labor markets. America works because of this balance between the desire to reward work and our concerns about economic justice. But according to Jon Forman, America could work even better.
In Making America Work, Forman explains how current government policies influence work and work behavior and makes the case for changing government tax, welfare, Social Security, pension, and labor market policies to encourage work and promote greater economic justice. It is a clear, provocative declaration of principles and a bold prescription for policies that restore and preserve the balance of work rewards and economic justice.
Designing a Work-Friendly Tax System: Options and Trade-Offs (Discussion Papers/Tax Policy Center)
|Posted to Web: September 01, 2006||Publication Date: September 01, 2006|
The federal tax system often imposes its highest effective marginal tax rates on low- and moderate-income individuals. This paper suggests several ways to reduce those high effective marginal rates but illuminates the large trade-offs involved. One approach would replace the current earned income credit (EIC) with a $2,000 EIC for working parents and a refundable $1,000 per child tax credit. A more comprehensive approach would integrate the individual income and Social Security tax systems into a single tax system with just two tax rates and a refundable $2,000 EIC for working parents and a $1,000 universal grant for every person.
Earned Income Credit: From The Encyclopedia of Taxation and Tax Policy (Article)
|Posted to Web: June 09, 2005||Publication Date: June 09, 2005|
The income credit was originally enacted in 1975, and over the years it has grown to be one of the principal antipoverty programs in the federal budget. The credit is a refundable income tax credit for low-income working taxpayers. Three separate schedules apply, depending on how many qualifying children the taxpayer has. This entry defines the credit, provides its history, and analyzes its effects.
|Posted to Web: October 01, 1999||Publication Date: October 01, 1999|
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