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January 23, 2007

SOTU - Defunding Social Security

-- by Dave Johnson

Bush wants to cut Social Security taxes - that is what is meant where he talked about a new tax deduction for health insurance that would come from "payroll taxes." That means from Social Security taxes.

Social Security is currently solvent, and projected to remain solvent. But not if Bush gets his way with this tax cut. Then it really WOULD be in trouble.

It's a trick. It is yet another scheme to get rid of Social Security.

Update - American Prospect picks up on this

But, there is a flip side to this tax break. If workers pay less money into Social Security, they would also get less back. To take an extreme case, imagine a worker whose pay averages $20,000 a year. Currently, this would salary would get this worker $11,000 if she started collecting benefits at the normal retirement age. Under President Bush’s proposal, the worker would only be credited with $5,000 a year towards her Social Security benefits, getting her $4,500 a year when she retires. This is a big difference.
Also Atrios.

Posted by Dave Johnson at January 23, 2007 10:11 PM

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