Just two little questions: If people are going to get a tax refund based on what they pay into Social Security, then we're not really talking about income tax relief, are we? And if what we're really talking about is payroll tax relief, doesn't that mean billions of dollars in lost revenue for a Social Security trust fund that is already badly underfinanced?
"Helping" poor people by handing out entitlements short term that destroy everyone's safety net long term? I think I've heard that song before, and recently.... A little more:
Even more interesting is what Mr. Obama's "tax cuts" do to Social Security financing. As Mr. Biggs notes, had Mr. Obama proposed to pay for payroll tax relief out of, well, payroll taxes, his plan would never have a chance in Congress. Most members would look at a plan that defunded a trust fund that seniors are counting on for their retirement as political suicide.
And that leads us to the heart of this problem. If the government is going to give tax cuts to 44% of American based on their Social Security taxes -- without actually refunding to them the money they are paying into Social Security -- Mr. Obama will have to get the funds elsewhere. And this is where "general revenues" turns out to be a more agreeable way of saying "Other People's Money."
Plus, by giving handouts to those who don't work and severely taxing the top 5% who pay half our taxes, Obama's plan seems to disincentivize work.
Holy Hannah! Remember how he was ashamed we can't say anything more than, "Merci beaucoup?" Now he's taking direct aim at the work ethic? Mon Dieu! He has a secret plan to turn us French!
