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<<And it is one of the greatest, if not the greatest, flim-flam jobs of all time. Early in his first term, Ronald Reagan cut income taxes mostly for the wealthy and raised payroll taxes which mostly effects lower income earners. This policy had two interesting effects. One is that it obviously shifted the tax burden towards lower income earners. And secondly, payroll taxes generated a giant surplus for 30 years. This surplus of course was spent in the general budget. In other words, the SS surplus helped fund those income tax cuts for the wealthy.

So now we're getting to where the surplus is dwindling. The meme is that since SS taxes aren't subsidizing income taxes much anymore, there needs to be a change in the way the system works. And that change is a cut in SS benefits in order to maintain low income tax rates for the wealthy.

Like I say, it is one of the greatest, if not the greatest, flim-flam jobs of all time. It all happened in plain sight too.

The Reagan Social Security tax increases WERE a great con job.

Their purpose was to fund the benefits promised to the WWII generation and that worked like a charm.

What failed, as you acknowledge, was that it didn't fund benefits for the boomer generation as was claimed.

So that leaves the issue of who will fund benefits for the baby boom generation? Will taxes be INCREASED, will deficits soar, or will benefits be cut? (or some combination).

My personal bias is to CUT BENEFITS and to end this dishonest intergenerational Ponzi scheme.

Seattle Pioneer
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