TITLE

Economic impacts of illness in older workers: quantifying the impact of illness on income, tax revenue and government spending

AUTHOR(S)
Schofield, Deborah J.; Shrestha, Rupendra N.; Percival, Richard; Passey, Megan E.; Kelly, Simon J.; Callander, Emily J.
PUB. DATE
January 2011
SOURCE
BMC Public Health;2011 Supplement 4, Vol. 11 Issue Suppl 4, p418
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Background: Long term illness has far reaching impacts on individuals, and also places a large burden upon government. This paper quantifies the indirect economic impacts of illness related early retirement on individuals and government in Australia in 2009. Methods: The output data from a microsimulation model, Health&WealthMOD, was analysed. Health&WealthMOD is representative of the 45 to 64 year old Australian population in 2009. The average weekly total income, total government support payments, and total taxation revenue paid, for individuals who are employment full-time, employed part-time and not in the labour force due to ill health was quantified. Results: It was found that persons out of the labour force due to illness had significantly lower incomes ($218 per week as opposed to $1167 per week for those employed full-time), received significantly higher transfer payments, and paid significantly less tax than those employed full-time or part-time. This results in an annual national loss of income of over $17 billion, an annual national increase of $1.5 billion in spending on government support payments, and an annual loss of $2.1 billion in taxation revenue. Conclusions: Illness related early retirement has significant economic impacts on both the individual and on governments as a result of lost income, lost taxation revenue and increased government support payments. This paper has quantified the extent of these impacts for Australia.
ACCESSION #
62668256

 

Related Articles

  • THE RESPONSIVENESS OF STATE TAX REVENUE TO ECONOMIC GROWTH. Legler, John B.; Shapiro, Perry // National Tax Journal;Mar68, Vol. 21 Issue 1, p46 

    This article examines the responsiveness of state tax revenue to the growth in personal income in the U.S. The notion of the responsiveness of state tax revenues to growth in income is made operational by defining the elasticity of tax revenues with respect to income. The elasticity is defined...

  • IRS Proposes 'Phased Retirement' Regs. Bell, Allison // National Underwriter / Life & Health Financial Services;11/15/2004, Vol. 108 Issue 43, p7 

    Describes the efforts of the U.S. Internal Revenue Service (IRS) in adapting to the new phased retirement movement. Emphasis on IRS' publication of the proposed regulations and a discussion in the Federal Register; Major goals of the authors of the proposed regulations; Focus of the authors of...

  • Who will fight for NY's future?  // Crain's New York Business;4/6/2009, Vol. 25 Issue 14, p10 

    The article reports that people of New York are not happy with the budget alloted for them in March 2009. As reported, the state increased spending by $10 billion, at a time when revenues are falling, by using $7 billion in federal stimulus money and imposing more than $7 billion in tax...

  • National Accounts.  // Canadian Economic Observer;Jan2005 Statistical Summary, Vol. 18, p1 

    Presents several charts depicting the economic indicators in Canada as of February 2005. Gross domestic product; Personal income and spending; Government revenue and expenditure.

  • How Many Bonds Should You Buy? Milton, George Fort // New Republic;4/13/42, Vol. 106 Issue 15, p486 

    Focuses on a rule-of-thumb calculation to show how much earners at various income levels should set aside for taxes and defense-bond purchases in the U.S. Need for the rule-of-thumb calculation; Information on the sources of income which the Treasury depends on for an estimated $52,000000,000 to...

  • Working for no one but him. Vance, Laurence M. // Liberty (08941408);May2009, Vol. 23 Issue 4, p23 

    The author focuses on the federal income tax, which he claims as the one that infuriates U.S. citizens the most. He states that the nation ranks high in personal income taxes, and even higher in corporate income taxes. He claims that the only way to eliminate the Internal Revenue Service (IRS)...

  • Debt means nothing unless you compare it to income, wealth. Sowell, Thomas // Enterprise/Salt Lake City;12/6/2004, Vol. 34 Issue 24, p12 

    Argues against the need for increasing the taxes in the U.S. in 2004 in order to lower the national debt. Significance of reducing the rate of increase in government spending to tax revenues; Purpose of taxes; Ways to reduce the national debt.

  • CAPITAL-GAINS TAXATION. Atlas, Martin // Accounting Review;Dec38 Part 1, Vol. 13 Issue 4, p346 

    An expenditures tax may have definite merits; it seems clear, however, that while rich people spend more than poor ones do, they neither spend proportionately nor as much as they have the ability to spend. Such a tax is, therefore, not in conformity with the principles of progressive taxation...

  • IRS Releases Long-Awaited Update to Plan Qualification Correction Program.  // Benefits & Compensation Digest;Aug2006, Vol. 43 Issue 8, Special section p7 

    The article reports that the U.S. Internal Revenue Service released an updated version of its Employee Plans Compliance Resolution System (EPCRS), the comprehensive system of correction programs for retirement plans that have failed to meet one or more of the Internal Revenue Code's...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics