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Cheerful senior man at home looking at his mail

The brief’s key findings are: Low earners receive much more in Social Security benefits than they pay in Social Security taxes, reflecting the program’s progressive design. The interaction between Social Security provisions and income taxes has little net effect on the program’s progressivity: the exemption of employers’ Social Security contributions from workers’ income taxes makes the system…

Mature man is hired to handle outreach to senior adults

As noted in last week’s blog post, contributions to 401(k) plans are treated favorably under the federal personal income tax.  The government does not tax either the employee or employer contributions to these plans or the investment earnings on the contributions until the monies are withdrawn in retirement.  In addition, deferral shifts income to a…