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Publication Date: July 2001
Publisher: Center for Economic and Policy Research
Author(s): Dean Baker
Research Area: Banking and finance
Keywords: Payroll tax; Wealth redistribution; Household income
Type: Report
Coverage: United States
Abstract:
The report provides an approximation of the redistribution that would result from the U.S. government's decision to default on the Social Security trust fund. Since such a default implies replacing progressive income taxes with a very regressive payroll tax, it leads to a substantial upward redistribution of income.