Monday, August 11, 2014

Brown: “The Social Security Earnings Test Is Not A Tax”

Over at Forbes, University of Illinois economist Jeffrey Brown hits on one of my personal pet peeves: the misunderstanding of how Social Security’s “earnings test” workers. Retirees treat it as a “tax” on work, in part because SSA always told them it was. As a result, retirees work less.
In reality, as Jeff shows, the earnings test isn't a tax. Check out his whole piece for details.
And for more info, see my 2008 AEI paper: The Tax That Wasn’t.

1 comment:

JoeTheEconomist said...

You have a couple of typos here.

The link to the piece doesn't work, S/B

and 'how Social Security's earnings test workers -> s/b works.