Volume 2 (2007)
Most Downloaded Articles
- Basic Income and Labour Supply: The German Case by Gilroy, Bernard Michael/ Heimann, Anastasia and Schopf, Mark
- Classical Liberalism and the Basic Income by Zwolinski, Matt
- Basic Income, Occupational Freedom and Antipoverty Policy by Haagh, Louise
- Locke on Basic Income by Layman, Daniel
- Two Libertarian Arguments for Basic Income Proposals by Powell, Brian K.
Entitlement Reform: From Tangled Web to Safety Net
1Falls Church, Virginia, USA
Citation Information: Basic Income Studies. Volume 8, Issue 1, Pages 105–137, ISSN (Online) 1932-0183, ISSN (Print) 2194-6094, DOI: 10.1515/bis-2013-0001, August 2013
- Published Online:
So far, most options for protecting the viability of Social Security have tinkered with financing and eligibility rules that do nothing about design flaws that led to our current fiscal crisis – regressive transfers, unfunded liabilities, and inefficient funding of retirement benefits. Under the current system, payroll taxes rob the first dollars of earnings from the working poor and from others who would prefer real savings to a promise of future benefits from the government, while retirees who do not need public support fight for their earned benefits. My proposal, Social Security Basic Income, replaces a rigid formula for forced savings and intergenerational transfers with a pay-as-you-go welfare program funded from general revenue that provides basic income to poor people, regardless of age. Comparative static analysis of the impact of this system on individuals finds that a generous safety net will not significantly increase total federal expenditures or individual tax burdens.