Other, general social insurance

With most Americans focused on taxes this month, it’s a good time to take a look at the relationship between federal income taxes and social insurance contributions.

Overview of Federal Taxes and Distributional Effects

The latest report by the Joint Committee on Taxation, Overview of the Federal Tax System As In Effect for 2019, provides a comprehensive starting point. This report breaks out the current federal tax system into four elements:

The Academy’s 31^st annual policy conference – Regenerating Social Insurance for Millennials and the Millennium – was by all measures a success. It represented a different approach to one of the Academy’s signature events in both style and substance.

“Universal basic income” (UBI) has only recently come into popular usage, but the idea of assuring a base level of income to all is not new. Social insurance programs have been performing a similar function for much of the last century. Social Security and Unemployment Insurance both provide a base level of income given one’s eligibility for receiving benefits. The latter part of the statement is, of course, a defining characteristic of traditional social insurance—eligibility is contingent on one’s paying in.

For all of us who are dedicated to the Academy’s mission – “increasing public understanding of how social insurance contributes to economic security” – 2019 has the makings of a challenging year.

One of the top challenges facing us as we begin a new year is to develop and refine a common language that connects with the public at large. When distraction, detraction, and discord seem so prevalent in the nation’s political discourse, we need new ways to refocus the conversation on unifying issues that matter most to many. When it comes to providing greater economic security and reducing inequality in our nation, we need to reframe how we discuss social insurance, so that its enduring value as shared protection will be communicated more effectively.

If we were to measure the American people’s current understanding of social insurance, what might we find?

Ramsey L. Alwin is the Director of Thought Leadership for Financial Resilience in the Office of Policy, Research, and International Affairs at AARP. Alwin’s work focuses on longevity trends and economic security issues, especially as they relate to older adults.