US

Funding Social Security

Question A:

A recent CRFB report is a reminder of concerns about the long-term financial sustainability of Social Security: https://www.crfb.org/press-releases/dont-let-social-securitys-91st-birthday-be-one-its-last

Removing the cap on earnings subject to Social Security payroll taxes, without increasing benefits for earnings above the current cap, would substantially improve the program's long-term financial sustainability and make it more progressive.

Responses weighted by each expert's confidence

Question B:

Removing the cap on earnings subject to Social Security payroll taxes, without increasing benefits for earnings above the current cap, would substantially improve the long-term financial sustainability of the consolidated federal budget.

Responses weighted by each expert's confidence

Question C:

Replacing wage indexation with price indexation in the calculation of initial Social Security retirement benefits would substantially improve the program's long-term financial sustainability without undermining its social insurance function.

Responses weighted by each expert's confidence

Question D:

Automatically adjusting the Social Security full retirement age in line with increases in life expectancy would substantially improve the program's long-term financial sustainability.

Responses weighted by each expert's confidence

Question A Participant Responses

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Agree
4
Bio/Vote History
But we may need to have a more radical overhaul.:payroll taxes add to labor income taxation and increase the asymmetry between labor and capital income taxes. It may be useful to consider higher capital income taxes and transfers from other parts of gov. budget to Social Security
Aguiar
Mark Aguiar
Princeton
Agree
4
Bio/Vote History
Altonji
Joseph Altonji
Yale
Strongly Agree
5
Bio/Vote History
I agree with the statement, although labor supply responses by high earners to the higher marginal tax rate will reduce the gains and reduce general tax revenue. Expanding the tax to cover nonwage compensation is a better option.
Auerbach
Alan Auerbach
Berkeley
Agree
7
Bio/Vote History
Autor
David Autor
MIT
Agree
6
Bio/Vote History
Substantially means about closing about 20% of the gap. This is not a comprehensive solution
Banerjee
Abhijit Banerjee
MIT
Strongly Agree
7
Bio/Vote History
Bergemann
Dirk Bergemann
Yale
Strongly Agree
9
Bio/Vote History
Bertrand
Marianne Bertrand
Chicago
Agree
2
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Agree
8
Bio/Vote History
Chevalier
Judith Chevalier
Yale
Agree
8
Bio/Vote History
Cutler
David Cutler
Harvard
Strongly Agree
10
Bio/Vote History
Duffie
Darrell Duffie
Stanford
Agree
5
Bio/Vote History
Edlin
Aaron Edlin
Berkeley
Strongly Agree
10
Bio/Vote History
Eichengreen
Barry Eichengreen
Berkeley
Agree
5
Bio/Vote History
Einav
Liran Einav
Stanford
Agree
1
Bio/Vote History
Fair
Ray Fair
Yale
Agree
5
Bio/Vote History
Glaeser
Edward Glaeser
Harvard
Uncertain
4
Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale Did Not Answer Bio/Vote History
Greenstone
Michael Greenstone
University of Chicago
Agree
7
Bio/Vote History
Hart
Oliver Hart
Harvard
Agree
6
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
Agree
8
Bio/Vote History
Need to combine with other changes.
Hurst
Erik Hurst
Chicago Booth
Strongly Agree
8
Bio/Vote History
Judd
Kenneth Judd
Stanford
Strongly Agree
9
Bio/Vote History
This idea was proposed by Alvin Rabushka in a 1998 WSJ op-ed as part of tax reform more generally. He argued that the progressivity of this change would balance the regressivity of moving to a flat tax.
-see background information here
Kaplan
Steven Kaplan
Chicago Booth
Uncertain
5
Bio/Vote History
Fewer people over time and no governor on benefits.
Kashyap
Anil Kashyap
Chicago Booth
Strongly Agree
7
Bio/Vote History
Klenow
Pete Klenow
Stanford
Agree
8
Bio/Vote History
May close 58% of the 75-year gap.
-see background information here
Levin
Jonathan Levin
Stanford
Agree
3
Bio/Vote History
This would be a very large tax increase for many households with consequences beyond the stated question.
Maskin
Eric Maskin
Harvard
Agree
7
Bio/Vote History
Obstfeld
Maurice Obstfeld
Peterson Institute for International Economics
Agree
3
Bio/Vote History
Pathak
Parag Pathak
MIT Did Not Answer Bio/Vote History
Samuelson
Larry Samuelson
Yale
Agree
8
Bio/Vote History
Scheinkman
José Scheinkman
Columbia University Did Not Answer Bio/Vote History
Schmalensee
Richard Schmalensee
MIT
Strongly Agree
7
Bio/Vote History
Scott Morton
Fiona Scott Morton
Yale
Strongly Agree
7
Bio/Vote History
Shapiro
Carl Shapiro
Berkeley
Agree
8
Bio/Vote History
Shimer
Robert Shimer
University of Chicago
Strongly Agree
7
Bio/Vote History
This alone delays insolvency for about 30 years
-see background information here
Stantcheva
Stefanie Stantcheva
Harvard Did Not Answer Bio/Vote History
Stock
James Stock
Harvard
Agree
4
Bio/Vote History
Syverson
Chad Syverson
Chicago Booth
Agree
9
Bio/Vote History
Not sure it is the optimal strategy but it will do what the question asks about.
Thaler
Richard Thaler
Chicago Booth
Agree
7
Bio/Vote History
Of course the cap can be raised to less than infinity.
Udry
Christopher Udry
Northwestern
Agree
6
Bio/Vote History
Werning
Ivan Werning
MIT Did Not Answer Bio/Vote History

Question B Participant Responses

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Agree
4
Bio/Vote History
Aguiar
Mark Aguiar
Princeton
Agree
4
Bio/Vote History
Altonji
Joseph Altonji
Yale
Strongly Agree
4
Bio/Vote History
Auerbach
Alan Auerbach
Berkeley
Uncertain
5
Bio/Vote History
Autor
David Autor
MIT
Agree
6
Bio/Vote History
It would help. I'm not sure what the threshold is for substantial.
Banerjee
Abhijit Banerjee
MIT
Agree
5
Bio/Vote History
Bergemann
Dirk Bergemann
Yale
Strongly Agree
9
Bio/Vote History
Bertrand
Marianne Bertrand
Chicago
Agree
2
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Agree
4
Bio/Vote History
Chevalier
Judith Chevalier
Yale
Agree
3
Bio/Vote History
Cutler
David Cutler
Harvard
Strongly Agree
10
Bio/Vote History
Duffie
Darrell Duffie
Stanford
Agree
4
Bio/Vote History
Edlin
Aaron Edlin
Berkeley
Strongly Agree
10
Bio/Vote History
Eichengreen
Barry Eichengreen
Berkeley
Disagree
5
Bio/Vote History
Einav
Liran Einav
Stanford
Uncertain
1
Bio/Vote History
Fair
Ray Fair
Yale
Uncertain
5
Bio/Vote History
Glaeser
Edward Glaeser
Harvard
Disagree
6
Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale Did Not Answer Bio/Vote History
Greenstone
Michael Greenstone
University of Chicago
Agree
5
Bio/Vote History
Hart
Oliver Hart
Harvard
Agree
6
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
Agree
8
Bio/Vote History
Hurst
Erik Hurst
Chicago Booth
Agree
9
Bio/Vote History
Judd
Kenneth Judd
Stanford
Strongly Agree
9
Bio/Vote History
While I strongly agree, there is much research that needs to be done to make the case that a flat income tax plus a flat social security tax would be superior to our current system. I have described such a project on my website.
-see background information here
Kaplan
Steven Kaplan
Chicago Booth
Uncertain
5
Bio/Vote History
Kashyap
Anil Kashyap
Chicago Booth
Uncertain
5
Bio/Vote History
Depends if this is really done and there are no offsets elsewhere. It would raise money and then the question is whether other spending and taxes will also be changed.
Klenow
Pete Klenow
Stanford
Agree
7
Bio/Vote History
Levin
Jonathan Levin
Stanford
Uncertain
2
Bio/Vote History
Maskin
Eric Maskin
Harvard
Agree
7
Bio/Vote History
Obstfeld
Maurice Obstfeld
Peterson Institute for International Economics
Agree
3
Bio/Vote History
Pathak
Parag Pathak
MIT Did Not Answer Bio/Vote History
Samuelson
Larry Samuelson
Yale
Agree
8
Bio/Vote History
Scheinkman
José Scheinkman
Columbia University Did Not Answer Bio/Vote History
Schmalensee
Richard Schmalensee
MIT
Agree
7
Bio/Vote History
Scott Morton
Fiona Scott Morton
Yale
Agree
7
Bio/Vote History
Shapiro
Carl Shapiro
Berkeley
Disagree
9
Bio/Vote History
Shimer
Robert Shimer
University of Chicago
Disagree
5
Bio/Vote History
In the short-run, this will likely reduce fiscal deficits. The long-run response is unclear. This would make the top marginal tax rate in places like NYC and CA the highest in the world, with unknown impact on internationally-mobile top earners.
Stantcheva
Stefanie Stantcheva
Harvard Did Not Answer Bio/Vote History
Stock
James Stock
Harvard
Agree
4
Bio/Vote History
Syverson
Chad Syverson
Chicago Booth
Uncertain
5
Bio/Vote History
Unclear how many drops it would be in this bucket.
Thaler
Richard Thaler
Chicago Booth
Agree
4
Bio/Vote History
Udry
Christopher Udry
Northwestern
Strongly Agree
4
Bio/Vote History
Werning
Ivan Werning
MIT Did Not Answer Bio/Vote History

Question C Participant Responses

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Uncertain
4
Bio/Vote History
Uncertain because there is no guarantee that with AI-driven automation, wage increases will be faster than price increases in the future.
Aguiar
Mark Aguiar
Princeton
Uncertain
2
Bio/Vote History
Altonji
Joseph Altonji
Yale
Uncertain
4
Bio/Vote History
Auerbach
Alan Auerbach
Berkeley
Agree
5
Bio/Vote History
Autor
David Autor
MIT
Agree
6
Bio/Vote History
Banerjee
Abhijit Banerjee
MIT
Uncertain
4
Bio/Vote History
Bergemann
Dirk Bergemann
Yale
Uncertain
7
Bio/Vote History
Bertrand
Marianne Bertrand
Chicago
Disagree
1
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Agree
5
Bio/Vote History
Chevalier
Judith Chevalier
Yale
Uncertain
1
Bio/Vote History
Cutler
David Cutler
Harvard
Uncertain
4
Bio/Vote History
Duffie
Darrell Duffie
Stanford
Uncertain
3
Bio/Vote History
Edlin
Aaron Edlin
Berkeley
Agree
6
Bio/Vote History
Eichengreen
Barry Eichengreen
Berkeley
Uncertain
5
Bio/Vote History
Einav
Liran Einav
Stanford
Uncertain
1
Bio/Vote History
Fair
Ray Fair
Yale
No Opinion
Bio/Vote History
Glaeser
Edward Glaeser
Harvard
Agree
7
Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale Did Not Answer Bio/Vote History
Greenstone
Michael Greenstone
University of Chicago
Uncertain
3
Bio/Vote History
Hart
Oliver Hart
Harvard
Agree
6
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
Uncertain
5
Bio/Vote History
Hurst
Erik Hurst
Chicago Booth
Disagree
5
Bio/Vote History
During the last 45 years, real wage growth has been low (wages have been growing at same rate as prices). As a result, it would have made little difference during this period.
Judd
Kenneth Judd
Stanford
Agree
8
Bio/Vote History
The index should be constructed to reflect the cost of living of the elderly.
Kaplan
Steven Kaplan
Chicago Booth
Strongly Agree
9
Bio/Vote History
Kashyap
Anil Kashyap
Chicago Booth
Strongly Agree
7
Bio/Vote History
16 percent improvement from shifting to the chained CPI, see the link below
-see background information here
Klenow
Pete Klenow
Stanford
Disagree
6
Bio/Vote History
May close 69% of the 75-year gap and 131% (!) of the 2100 gap. Essentially phasing out SS benefits relative to real wages in the long run.
-see background information here
Levin
Jonathan Levin
Stanford
Agree
3
Bio/Vote History
Would help with solvency but reduces the growth path of benefits - the social insurance part of this question depends a lot on the baseline assumption.
Maskin
Eric Maskin
Harvard
Agree
5
Bio/Vote History
Obstfeld
Maurice Obstfeld
Peterson Institute for International Economics
Uncertain
3
Bio/Vote History
Pathak
Parag Pathak
MIT Did Not Answer Bio/Vote History
Samuelson
Larry Samuelson
Yale
Agree
6
Bio/Vote History
Assuming that wages increase faster than prices, which is plausible not not assured.
Scheinkman
José Scheinkman
Columbia University Did Not Answer Bio/Vote History
Schmalensee
Richard Schmalensee
MIT
Agree
4
Bio/Vote History
Scott Morton
Fiona Scott Morton
Yale
Uncertain
1
Bio/Vote History
Shapiro
Carl Shapiro
Berkeley
Uncertain
5
Bio/Vote History
Shimer
Robert Shimer
University of Chicago
Uncertain
5
Bio/Vote History
This would matter very little for sustainability in the next decade, unless it were applied retroactively to current beneficiaries
Stantcheva
Stefanie Stantcheva
Harvard Did Not Answer Bio/Vote History
Stock
James Stock
Harvard
Agree
4
Bio/Vote History
Syverson
Chad Syverson
Chicago Booth
Agree
8
Bio/Vote History
The UK triple lock shows the folly that can happen.
Thaler
Richard Thaler
Chicago Booth
Uncertain
4
Bio/Vote History
Depends on whether real wages rise.
Udry
Christopher Udry
Northwestern
Uncertain
1
Bio/Vote History
Werning
Ivan Werning
MIT Did Not Answer Bio/Vote History

Question D Participant Responses

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Agree
4
Bio/Vote History
Aguiar
Mark Aguiar
Princeton
Strongly Agree
7
Bio/Vote History
Altonji
Joseph Altonji
Yale
Agree
5
Bio/Vote History
Auerbach
Alan Auerbach
Berkeley
Strongly Agree
9
Bio/Vote History
Autor
David Autor
MIT
Strongly Agree
8
Bio/Vote History
Banerjee
Abhijit Banerjee
MIT
Agree
5
Bio/Vote History
Bergemann
Dirk Bergemann
Yale
Agree
8
Bio/Vote History
Bertrand
Marianne Bertrand
Chicago
Agree
2
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Agree
6
Bio/Vote History
Chevalier
Judith Chevalier
Yale
Agree
1
Bio/Vote History
Cutler
David Cutler
Harvard
Agree
5
Bio/Vote History
Duffie
Darrell Duffie
Stanford
Agree
5
Bio/Vote History
Edlin
Aaron Edlin
Berkeley
Strongly Agree
10
Bio/Vote History
Eichengreen
Barry Eichengreen
Berkeley
Agree
5
Bio/Vote History
Einav
Liran Einav
Stanford
Strongly Agree
1
Bio/Vote History
Fair
Ray Fair
Yale
Agree
5
Bio/Vote History
Glaeser
Edward Glaeser
Harvard
Agree
8
Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale Did Not Answer Bio/Vote History
Greenstone
Michael Greenstone
University of Chicago
Agree
10
Bio/Vote History
Hart
Oliver Hart
Harvard
Agree
7
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
Uncertain
5
Bio/Vote History
Hurst
Erik Hurst
Chicago Booth
Uncertain
7
Bio/Vote History
Average life expectancy has plateaued during last few decades. It is the life expectancy gains of the past that are causing the fiscal problems.
Judd
Kenneth Judd
Stanford
Strongly Agree
9
Bio/Vote History
Retirement age should be adjusted for the average difficulty of work. Adjusting for life expectancy is a step in the right direction.
Kaplan
Steven Kaplan
Chicago Booth
Strongly Agree
9
Bio/Vote History
Kashyap
Anil Kashyap
Chicago Booth
Strongly Agree
7
Bio/Vote History
17% improvement, see the link
-see background information here
Klenow
Pete Klenow
Stanford
Uncertain
4
Bio/Vote History
And might be regressive.
-see background information here
Levin
Jonathan Levin
Stanford
Agree
3
Bio/Vote History
Maskin
Eric Maskin
Harvard
Agree
7
Bio/Vote History
Obstfeld
Maurice Obstfeld
Peterson Institute for International Economics
Agree
3
Bio/Vote History
Pathak
Parag Pathak
MIT Did Not Answer Bio/Vote History
Samuelson
Larry Samuelson
Yale
Strongly Agree
8
Bio/Vote History
This is an obvious approach to restoring feasibility.
Scheinkman
José Scheinkman
Columbia University Did Not Answer Bio/Vote History
Schmalensee
Richard Schmalensee
MIT
Strongly Agree
7
Bio/Vote History
Scott Morton
Fiona Scott Morton
Yale
Agree
5
Bio/Vote History
Shapiro
Carl Shapiro
Berkeley
Strongly Agree
7
Bio/Vote History
Shimer
Robert Shimer
University of Chicago
Uncertain
5
Bio/Vote History
This would matter very little for sustainability in the next decade, unless it were applied retroactively to current beneficiaries. It should have been done 40 years ago.
Stantcheva
Stefanie Stantcheva
Harvard Did Not Answer Bio/Vote History
Stock
James Stock
Harvard
Agree
4
Bio/Vote History
Syverson
Chad Syverson
Chicago Booth
Strongly Agree
8
Bio/Vote History
Thaler
Richard Thaler
Chicago Booth
Agree
4
Bio/Vote History
Udry
Christopher Udry
Northwestern
Agree
8
Bio/Vote History
Werning
Ivan Werning
MIT Did Not Answer Bio/Vote History