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Lifetime Taxpayer Contributions And Benefits Of Medicare And Social Security

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  • Jing Guo
  • Marilyn Moon

Abstract

Many criticisms of Medicare and Social Security have suggested that beneficiaries get more than they paid into the system over their lifetimes and these entitlement programs may be unsustainable if they are insufficiently funded. But studies do not always use appropriate assumptions for estimating lifetime values. Our simulation model properly aligns the financing sources with the benefits received by making consistent comparisons and using a more appropriate inflation adjustment. Our study suggests that using different assumptions can dramatically change the balance between contributions and benefits as compared with other analyses. Choosing the appropriate assumptions is essential for a reasoned debate on the important issues about the future and financing of Medicare and Social Security. (JEL I13, H5, H24)

Suggested Citation

  • Jing Guo & Marilyn Moon, 2018. "Lifetime Taxpayer Contributions And Benefits Of Medicare And Social Security," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 483-492, July.
    • Handle: RePEc:bla:coecpo:v:36:y:2018:i:3:p:483-492
    DOI: 10.1111/coep.12226
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    References listed on IDEAS

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    Cited by:

    1. Li Tan & Cory Koedel, 2019. "The Effects of Differential Income Replacement and Mortality on U.S. Social Security Redistribution," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 613-637, October.

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    More about this item

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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