jeconomist Wrote:
Nov 22, 2012 8:22 AM
You realize that GWB's idea would have increased the size of Social Security and expanded its revenue reach. He would let you invest part of your money and pay something to Social Security. What GWB didn't advertise well is that lowering the inflow into Social Security would have required an increase in income taxes to pay for what wasn't going to SS. So he lowered your payroll taxes and increased your income taxes. The difference is that payroll taxes are capped where as income taxes aren't. In 2033, Social Security has hard forced cuts. Once SS could dip into the general fund, it is a bottomless pit.