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public policy analysis Solved

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Review of the Article titled How Social Security Could Benefit Workers

Those average wage workers who are retiring presently have paid higher social security charges than the benefits that they are likely to receive. Hence, they have a negative impact over the benefits. The Article poses an important question as to how the present and future employees Social Security benefits should be compared so that they receive the required tax increase that can pay for their benefits which will be an alternate way under the existing tax rates. There needs to be a harmonious way to balance between acceptance of lower benefits and paying his or her taxes.

In contrast to the policy that exists, there can be a long run balanced budget which would thrive to retain the existing budget but at the same time, would raise the retirement age of the workers who are likely to become eligible to get their claims by 2023 (Cbd.int, 2015). This procedure would be providing benefits to the less generous income earners while the high earning ones would be going through progressive price indexing.

This would look at attaining a regime where the similar workers would be paying a lower tax rate and this in turn would be resulting in a lower net lifetime tax payments up to 2% of their investments. In this baseline program, a man born in 1985 earning very low would be paying taxes equivalent to 13.5% of his lifetime income while he would be reaping benefits of 15.8%. This will make him earn 2.4% of his life earnings as an add on (Hsu, 2007).

As far as the reformed program is concerned, the tax rate will be lowered to 10.2% and the benefits will be 14.5%. This will provide benefits equaling 4.3% of the lifetime earnings. If the current retirement benefits are funded with proper funding, then the shortfall due to the $ 19.3 trillion can be curbed to a great extent.

Evaluative criteria

This policy is effective as it would address the requirements of the working groups as far as their investments and retirement benefits are in question (Kraft & Furlong, 2015).

It is also efficient as it will in fact improve the investments of the people and at the same time, it will increase the revenue for the nation.

If the policy is justly framed and properly made understood to the people, then, they would not face any uncertainty in the procedure and the policy is likely to function well.

It is also a constitutionally just policy as nothing in it is against the constitution or against the law of the land.

Finally, it is both administratively as well as politically feasible as the people will be interested in the investments in this policy and will also come forward to get the benefits post their retirement. Since the time period and other requirements are clearly mentioned, there is no ambiguity in the policy and it is likely to see wide popularity.

Personal thoughts

There is room for improvement in this policy as there may be certain hidden costs that are involved in it (Romell, 2012). Moreover, it might also violate the law of ethics as certain people who have already retired shall not reap the benefits. There should be the application of retrospection in this.

 

 

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