It has been argued that the scheme for financing Social Security is unfair because people with low

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It has been argued that the scheme for financing Social Security is unfair because people with low earnings are taxed at a higher rate than individuals with high earnings. Explain the basis for this contention. Opponents of this view argue that looking at the tax system by itself is misleading-when viewed as part of a tax-transfer system, Social Security gives proportionately larger increases to low-income individuals. Explain the basis for this contention as well.

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Public Finance

ISBN: 9780073511283

8th Edition

Authors: Harvey Rosen, Ted Gayer

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