Unless Social Security benefits are drastically reduced or the system is privatized, taxpayers can expect to see Social Security payroll taxes raised by 50 percent—bringing total payroll taxes, including Medicare taxes, to as high as 25 percent. Full privatization, unlike its alternatives, could achieve all of the legitimate goals of Social Security while accelerating economic growth.
Laurence J. Kotlikoff is a professor of economics at Boston University and co-author of The Clash of Generations (The MIT Press, 2012).
EconomyEntitlements and WelfareGovernment and PoliticsPrivatizationRegulationSocial SecurityTaxes