<< Is there some technical objection to what, to me, seems an obviously appealing demand -- for straightforward abolition of the FICA and Medicare taxes, and financing of Social Security and MC out of income taxes?
I understand that that would be a political departure. But a political departure, under the right circumstances would be a way to attract support to a progressive position. But is there some complexity of implementation that I don't get?
Why haven't progressives put forward this seemingly obvious and clear demand, which would lead to a drastic reduction in most people's tax burden and a democratization of the tax structure?
Christopher Rhoades Dÿkema
>>
The objection is political, not technical. The fear is that the imperative for Social Security will lose moral force if it is funded directly out of general funds.
There are people who want to end Social Security, and they work hard at doing so. One impediment to their goal is the feeling of entitlement that paying FICA taxes gives taxpayers to the benefits. I read someplace that Roosevelt was quite conscious of the point.
Your point about the tax burden is well taken, it is regressive, however, the benefit computation compensates for the regression. I read someplace that the regressive tax vs the progressive benefit computation comes out a wash.
If we didn't have such a troglodyte political system, your suggestion would be quite reasonable.
-- John K. Taber