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Should We Dump All The Tax Double Talk And Just Have A Single Federal Tax Even If It Is Progressive Rates?

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Should We Dump All The Tax Double Talk And Just Have A Single Federal Tax Even If It Is Progressive Rates?

Postby Mareo » Tue Oct 10, 2017 7:48 am

There is no Social security fund. You could base social security on taxes paid in to the system. The more you cheat the less you get.

There is no medicare fund. It goes into the general fund.

Social Security is not insurance. Medicare is not insurance. They are taxes. Telling people they are insurances is misleading.
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Should We Dump All The Tax Double Talk And Just Have A Single Federal Tax Even If It Is Progressive Rates?

Postby Clayton » Wed Oct 11, 2017 9:04 am

The system has a 20.5 trillion dollar shortfall, and you want to change the wording around from insurance to taxes.
This is shifting deck chairs.
You aren't dealing with the problem within the Social Security system.

Social Security taxes do not 'go into the general fund' any more than your retirement buys government securities.
It may be a bad investment, but it is an investment.

Social Security is insurance if you look up the definition of insurance in the dictionary.
Social Security is a poorly run version of insurance which faces certain collapsing benefits.
We under-priced the system for more than 40 years - and you are surprised that you have a problem?

The idea that they are purely taxes is understandable from younger workers.
Many of them believe that they will get nothing.
They may in fact get nothing, but it will largely stem from their own willingness to do nothing about the system.

FDR rejected that concept that would bring the general fund into the picture because it would make Social Security nothing more than a political priority.
A retirement system should not depend upon politics because it serves an audience that doesn't adapt well to change.
We have moved a long way away from FDR's original vision to a point where younger workers see the system as nothing more than a tax.
If that continues, the day will come when younger workers decide that the political priority is paying down the debt.

Fix Social Security Now on FB
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Should We Dump All The Tax Double Talk And Just Have A Single Federal Tax Even If It Is Progressive Rates?

Postby Othmann » Wed Oct 11, 2017 1:53 pm

How can we have "a single federal tax even if it is progressive rates".
The two are mutually exclusive.
As soon a you begin to punish one group with a higher rate or fewer deductions than another, it stops being a "single federal tax.".
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