| rior research has found that the regressivity of the social security tax dominates the progressive nature of the individual income tax. This dissertation analyzes the equity and revenue impacts of three alternative tax provisions: the 1991 earned income tax credit, an expanded earned income tax credit, and a reduction in the social security tax base for the standard deduction and exemptions. The common goal of these provisions is to mitigate the regressivity that the social security tax imparts on the combined income tax and social security tax distribution. To assure revenue neutrality, the three provisions are simulated with four financing options: an increase in the social security wage base to... |
