By Richard V. Burkhauser
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Additional resources for A Challenge to Social Security. The Changing Roles of Women and Men in American Society
Age group), pay the same dollar premium for a given level of financial protection, and that the combined total of premiums paid plus interest accrued by the risk class must equal the expected benefits. An application of this principle to retirement insurance is the reduction of the monthly benefit for people who retire early. Insurance equity also dictates that if one group is to have a higher level of retirement income than another, then that group should pay enough, but no more than enough, to cover the additional cost of the higher benefits.
This can be said of community-property law. It can also be said of the features of OASI that tie a spouse's benefit to her husband's work record and ignore her payroll tax contributions. ) Thus, there is a conflict between incentives to encourage family security on the one hand, and incentives to encourage women to adopt a full-time, full-life career in the labor force. 'It is interesting to note that the Food Stamp program adopts neither the individual nor the family. Instead, the filing unit for stamps is the household, defined as the unit that buys, cooks, and eats food together.
1 2 A less ambitious approach would involve incremental changes that increase some women's benefits. The 1979 Advisory Council on Social Security recommended earnings sharing only by divorced spouses. Others have advocated reducing the number of quarters required for coverage, to permit more wives to generate their own earnings records. The equity and adequacy concepts that underlie these incremental changes are hard to identify. Increased benefits for particular groups of women would be financed at the expense of all payroll taxpayers, including these women, who would continue to pay "redundant" taxes.
A Challenge to Social Security. The Changing Roles of Women and Men in American Society by Richard V. Burkhauser