Feed on
Posts
Comments

My colleague Robert Novy-Marx over at our Simon School has a working paper released today:

The Revenue Demands of Public Employee Pension Promises
by Robert Novy-Marx, Joshua D. Rauh

Abstract:

We calculate increases in contributions required to achieve full
funding of state and local pension systems in the U.S. over 30 years.
Without policy changes, contributions would have to increase by 2.5
times, reaching 14.1% of the total own-revenue generated by state and
local governments.  This represents a tax increase of $1,385 per
household per year, around half of which goes to pay down legacy
liabilities while half funds the cost of new promises.  We examine
sensitivity to asset return assumptions, wage correlations, the
treatment of workers not currently in Social Security, and endogenous
geographical shifts in the tax base.

Remember this and this.

4 Responses to “This Week’s Sign of the Economic Apocalypse”

  1. arbuudglnf says:

    Muchas gracias. ?Como puedo iniciar sesion?

  2. 629435 101398Good post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content material from other writers and practice a bit something from their store. Id prefer to use some with the content on my weblog whether you dont mind. Natually Ill give you a link on your internet blog. Thanks for sharing. 48693

  3. 558479 640423Spot on with this write-up, I truly assume this web site needs significantly a lot more consideration. Ill probably be once far more to read far more, thanks for that information. 428299

  4. GClub says:

    176399 729980Merely wanna state that this really is very beneficial , Thanks for taking your time to write this. 756430

Leave a Reply