A FIRESIDE CHAT ON MEANS-TESTING FOR SOCIAL SECURITY: THE EMPIRICAL CASE

Robert E. Rosacker

The University of South Dakota Minnesota State University Mankato

Kirsten M. Rosacker Minnesota State University Mankato 

ABSTRACT 

Means-testing is a reasonable posture, fully and completely in line with the underlying foundations of the historical development of the Social Security system – in fact, means-testing already exists to some degree in current tax law where a portion of social transfer payments are subjected to taxation based upon one’s income level. This study proposes an expansion of current tax law surrounding means-testing of Social Security transfer payments and empirically assesses various income levels to determine the impact of such a proposed change on Social Security trust funds. The findings provide insight into the impacts of including means-testing as a part of the necessary revisions to ensure financial viability for this important social program.