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Wednesday, February 22, 2012

the payroll tax cut

Well I've been thinkin' for some time how odd it was that I hadn't seen anyone in the media who was noticing that the "payroll tax" that was just passed was being paid for out of the SS trust fund. That is all of that money that we are not paying in payroll taxes is money that will not go into the SS trust fund.

Finally though someone did mention it. I'm sure there were more, but to their credit the list included Tom Harkin D Iowa and Joe Manchin D WV who were willing to point out that this was reducing the time until SS does not have the money to pay the promised benefits. Benefits and taxes were supposed to be adjusted as needed to keep SS solvent for 75 years. That was so you could fix the problems way ahead of time which would make them relatively painless. According to the SS annual report it was good until the early 2030s before this tax cut. Let's see 2033-2012 = 21.

But the politicians (read we) have adopted a tried and true method of getting the people to steal from the future to put more money in our pockets today. They just took another huge chunk out of it with this taxcut. But not to worry. Someone asked Democratic Minority Leader Pelosi about it and she said that SS could handle it. Let's see, is 21 close to 75?

I guess, as they say, its close enough for government work.

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