The Internet and the chattering political class are all in an uproar about yesterday's agreement by the House Republican caucus to a two-month extension of reduction in what the media persists in euphemistically calling the "payroll tax." Here's today's New York Times report. Perhaps only once have I heard any news report on television or radio tell the audience what this tax funds: Social Security (and Medicare).
Republicans have been spewing venom since the election of President Obama about the $14 trillion U.S. deficit. That's chump change. The unfunded benefits of Social Security are projected to exceed $50 trillion. The federal government is already borrowing money to pay benefits (read a good account here). And we're cutting the tax that is already not high enough to cover the costs? I understand why politicians don't want the sheep-like American electorate to understand the "payroll tax" shell game but what explains the media's silence?
Even more important, what is to be done? For something more serious than my suggestion to double (rather than cut the tax), go here to read about the most recent bi-partisan plan put forward by Senator Ron Wyden (D-OR) and Congressman Paul Ryan (R-WI).
Republicans have been spewing venom since the election of President Obama about the $14 trillion U.S. deficit. That's chump change. The unfunded benefits of Social Security are projected to exceed $50 trillion. The federal government is already borrowing money to pay benefits (read a good account here). And we're cutting the tax that is already not high enough to cover the costs? I understand why politicians don't want the sheep-like American electorate to understand the "payroll tax" shell game but what explains the media's silence?
Even more important, what is to be done? For something more serious than my suggestion to double (rather than cut the tax), go here to read about the most recent bi-partisan plan put forward by Senator Ron Wyden (D-OR) and Congressman Paul Ryan (R-WI).
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