Privatizing Social Security the Right Way
By Laurence J. Kotlikoff
This article appeared in the Summer 2000 issue of The Independent Review.
Unless Social Security benefits are drastically reduced or the system is privatized, taxpayers can expect to see Social Security payroll taxes raised by 50 percentbringing total payroll taxes, including Medicare taxes, to as high as 25 percent. Full privatization, unlike its alternatives, could achieve all of the legitimate goals of Social Security while accelerating economic growth.
Laurence J. Kotlikoff is a professor of economics at Boston University and co-author of The Clash of Generations (The MIT Press, 2012).