Rob the poor to pay the rich
Earlier, I had casually invoked an old aphorism in saying that I preferred a government and economic policy in which the poor were not robbed to pay the rich.
Rosemary Esmay went ballistic and demanded proof that the shade of the Sheriff of Nottingham yet stalked the earth. I suggested that the present system of payroll taxes (for Social Security and Medicare) would do. I promised a response.
Interestingly enough David Mercer beat me to it.
Here's an example: Since there is no "means testing" is social security (do you need it?), a rich retiree will reap a check every month if they are rich or poor, paid for by those working when they draw it.
...there ISN'T a gigantic pool of all the tax money's paid into the SS system collecting interest, it gets raided every year for other budget items, and since the current payment liabilities each year are still smaller than FICA revenues that year, they can get away with it.
...there are poor people today paying FICA every month who most likely won't see the same benefit level as current retirees, some of whom don't "need" their SS check each month.
Hence, the poor being taxed to pay the rich.
Excellent point David.
Allow me emphasize an important point:
Since the government has co-mingled revenue from the Social Security Trust Fund with other revenues, it is clear that anything that results in higher deficits now and in the future (i.e., massive tax cuts at the top end of the rate scale) undermines our ability to make good on the promise that Social Security represents.
Hence, the poor being taxed to pay the rich.
Ironically, POTUS declined to offer a (much smaller, more affordable and targeted) stimulus package that included a payroll tax holiday, saying "it would undermine Social Security."
If he was really interested in shoring up SS, I'd suggest that he lose the tax cuts scheduled to take effect between now and 2010.
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