tag:blogger.com,1999:blog-7334408760351487944.post7212356026921838457..comments2023-11-12T06:43:00.060-05:00Comments on Notes on Social Security Reform: Should we lift the payroll-tax ceiling to fix Social Security?Andrew G. Biggshttp://www.blogger.com/profile/16617460431856611873noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7334408760351487944.post-85937950175102184322010-07-02T15:46:00.027-04:002010-07-02T15:46:00.027-04:00There I was referring to their marginal tax rate: ...There I was referring to their marginal tax rate: if they decide to earn an extra dollar, how much of it will they keep? That's going to be the factor in seeing if higher taxes will hurt economic incentives. The average tax rate (meaning total taxes/total income) doesn't matter as much, and in fact might affect things positively if done right.Andrew G. Biggshttps://www.blogger.com/profile/16617460431856611873noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-40346474512374758812010-07-02T14:49:58.641-04:002010-07-02T14:49:58.641-04:00When you say "that same person would pay an a...When you say "that same person would pay an additional tax of 12.4 percent", you make it sound like that $107K earner would owe $13K more because of the change. But they would only owe extra on amounts over $107K, so for the worker you described, the impact would be zero.Arnehttps://www.blogger.com/profile/00796151499106650732noreply@blogger.com