The tax treatment of different demographic groups varies considerably under Social Security, also called Old Age and Survivors Insurance (OASI). The lifetime net tax rates (LNTR), rates of return (RR), and age-65 net payment (NP-65) charted above are based on the assumption that current tax and benefit rules will prevail throughout the lifetimes of postwar generations— those born after 1945. The calculations draw on a large-scale simulation of the U.S. economy and a sophisticated Social Security benefit calculator.
Suggested citation: "Social Security," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-03, pp. 12-13, 03.01.1999.