Moneys Worth of Social Security Hearing Before the Committee On Finance Un

Cover Moneys Worth of Social Security Hearing Before the Committee On Finance Un
Moneys Worth of Social Security Hearing Before the Committee On Finance Un
United States Congress Senate Committee On Fina
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^ But the tendency for each cohort to receive a return equal ^ This statement treats the employer tax as if it were paid by workers. Myers and Schobel ignore the employer tax. This proceciure is wholly indefensible, although, as they point out, the effect of this assumption can be undone by dividing their reported results by 2. The assumption they make is equivalent to assuming that workers entirely escape the burden of the employer tax. They cite standard economic theory, which holds that all ...payroll taxes, those paid by work- ers and their employers, are approximately borne by workers. They also refer to various other possible incidence patterns none of v. 'hich is currently espoused by any respected economist, but all of which also imply that most of the burden is borne indirectly by workers. None of the eco- nomic theories of incidence they cite — or could cite — lends any support to the assumption they use — namely that the employer tax imposes no burdens at all on any worker.

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