Thursday, December 22, 2011


Do you remember this acronym?  Keep it simple, stupid.  The politicians and media are all over each other today talking about the Social Security tax cut.  Anyone who dares to say anything negative about this new sacred cow is called haughty, uncaring, and perpetrator of an American caste system.

Well, I think it is a bad idea to continue to "temporarily" reduce the social security payroll tax from 6.2% to 4.2%.  Such carelessness immediately raises the ever-mounting deficit by 2% of the annual US payroll.  Notice, there is no accompanying reduction in proposed Social Security benefits.  I am opposed to deliberately increasing the likelihood that our Social Security promise will be hollow for my children.  The longer the temporary tax reduction remains in place the less likely it will ever be reimposed.  Already, political rhetoric refers to the end of this "temporary" cut as a tax increase. 

If we want to mess with Social Security, lets do it right: comprehensively.  Be honest about the relationship between funding and benefits.  Keep it simple. 

No comments:

Post a Comment