Payroll tax cuts = intensification of campaign to "reform" SS

[Hannah Bell]

Payroll tax cuts of 2 points = immediate worsening of the formal actuarial status of SS, arming the opposition.

This admin is playing chess for the ruling class.

Done with it.

[polichick]

1. That's sure what it looks like - there's a knot in my stomach. nt

[myrna minx]

2. I actually had that thought, but *oof* I thought I was being too cynical.

Seeing it in print. :scared:

[somone]

3. Exactly

Thanks for pointing that out

[leftstreet]

4. CHECKMATE

[obxhead]

5. ugh. rec

[ProSense]

6. Reich: Eliminate payroll taxes to improve economy

Reich: Eliminate payroll taxes to improve economy

[Mass]

13. This is not what he is proposing. Actually, what he is proposing is progressive

Eliminate payroll taxes on the first $20,000 of income. Payroll taxes, you recall, include Social Security, Medicare and unemployment insurance. Make up the revenue loss by applying the payroll tax to incomes above $250,000.

So get rid of payroll taxes on the low income and increase them on the high incomes.
This is not what the deal is offering, as far as we know.

[ProSense]

14. The payroll tax holiday

is the stimulative portion. Raising the threshold, which still can be addressed, is to make up the difference.

[Mass]

15. Reich is not proposing one without the other. This is the point.

The proposal is just going to lower SS revenues and give more arguments to those who want to reduce it.

[ProSense]

18. I understand that

They have time to make up the difference, and they will have to.

[Radical Activist]

7. So you like regressive taxes?

Do you always like regressive taxes? Or is it just when it comes to your social security benefits?

[somone]

8. This is very important. Recommended

[bemildred]

9. Yeah.

Anything is better than taxing the plutocrats.

[Starry Messenger]

10. Yes. n/t

[RKP5637]

11. Yeah, and next they will want that permanent. As one of my friends says live

healthy and hope to die quickly if unhealthy or old. The younger generations sure have a lot of look forward to ... Oh, I forgot, they'll be socking away thousands of dollars for retirement and health care in this new economy of each person for thyself.

[BzaDem]

12. That is only true if they don't transfer the 120 billion from the general fund to the trust fund.

And they might very well not -- I just haven't seen a source on it either way.

If they do transfer the money, the 120 billion is just another mini stimulus.

[Hannah Bell]

17. They are *obligated* to buy back SS bonds if collections fall short,

that's not the issue.

The issue is that the hit is *large* enough to put SS formally in the red next year only, when it was forecast to be in the black.

This is a propaganda coup.

The other issue is that the loss also changes the long-term formal actuarial picture -- another propaganda coup.

Increasing the pressure to "fix" the problem they just created.

The other problem is that the $100 billion buy-back puts more pressure on the federal budget itself, adding to austerity pressures.

[Crystal Clarity]

16. Why didn't they just lift the cap?

... get rid of it entirely even? Instead of reducing revenue... Not that there's a problem w/SS, but if they want to frig around w/it then why not lift the cap instead? :shrug:

The approach they are using makes no sense to me. Can someone please explain? I wasn't hearing anyone complaining about payroll taxes to begin with other then folks on the very bottom and lower middle of the income scale (who are never listened to anyway) wtf?

[elehhhhna]

19. defund & destroy. hey! worked for other government programs!