Someone showed up at the end of the Social Security thread to write this:
Essentially this is the prefunding con job. Since FICA revenues will cease to support general expenditures in the near future what we must do is... increase the FICA tax so it continues to support general expenditures. In other words, we need to increase the regressive payroll tax so that we don't need to raise other taxes. And we're doing it to "save" social security.
- So math isn't one of your skills, then? The system goes into the red around 2017 - a decade from now. At that point, money that would otherwise flow towards discretionary programs will start bleeding to Social Security and Medicare. It will get worse over the course of the following 2 decades, until eventually, there won't be any money left for discretionary spending at all.
This is the con, laid out clearly for all to see. This has nothing to do with "saving Social security" and everything to do with increasing the regressivity of the tax code.
Someone had an idea for a lockbox, but the Village Elders decided that was a very silly idea.
Nov 16, 2007
Prefunding Con Job?
From the Atrios blog: