Paying For Social inSecurity

I’ve been trying to explain this to people for many many years now:

A Radical Re-Imagining Of The Tax System

Russell Roberts, Forbes, 1-23-09

The payroll tax [Social inSecurity & Medicare] a regressive tax that falls harshly on the poor. And it is deceptive, an unacceptable characteristic of a tax in a democracy.

Half of the payroll tax appears to be paid by employers. In fact, studies of the payroll tax show that the employer merely lowers worker compensation in response to the tax burden. So workers pay virtually the entire 15%.

Worse, the payroll tax gives the illusion that taxes are “contributions” toward future social security payments. In fact, the payroll tax is used to finance current recipients of Social Security and Medicare along with other government spending such as the war on Iraq and welfare for wealth farmers.

This fools workers into thinking such programs are cheaper than they actually are. This artificially encourages the demand for such programs.

Does this clarify it a bit? Sometimes all it takes is a different person’s words to understandingly explain.

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