Tuesday, April 12, 2005
Taxes and Work
The right wing is mounting a concerted effort to "fix" Social Security. (I put the word "fix" in quotes for a purpose.) Because the payroll tax will no longer be providing extra money to the Treasury after about 2016, and because the bonds in the trust fund will have to be paid by imposing a tax increase elsewhere, probably the income tax, the right-wingers say that Congress will certainly do something about the program long before the trust fund bonds are used up. It will be painful, and the sooner we get it done the better.
I am just a simple-minded progressive or liberal Democrat. I don't see the big problem. What's wrong with a modest increase in the income tax to provide the money to pay off the bonds? Then, after the bonds are paid off in 2041 or whenever, just keep the income tax rates in place to continue subsidizing the program. That seems like a simple and fairly painless solution. I don't see anything wrong with it.
But, NO!!! The right-wingers say that increases in income taxes on well-to-do individuals, especially successful entrepreneurs, discourages them from working! If they can't keep as much of their money, they won't work as hard, won't try as hard to create new businesses, won't try as hard to keep existing businesses going, and the result will be a stultification of the economy.
I'm still simple minded. I don't understand the argument. My own reaction would be to work still harder to earn extra money to make up for the increase in taxes. Am I crazy?
I am just a simple-minded progressive or liberal Democrat. I don't see the big problem. What's wrong with a modest increase in the income tax to provide the money to pay off the bonds? Then, after the bonds are paid off in 2041 or whenever, just keep the income tax rates in place to continue subsidizing the program. That seems like a simple and fairly painless solution. I don't see anything wrong with it.
But, NO!!! The right-wingers say that increases in income taxes on well-to-do individuals, especially successful entrepreneurs, discourages them from working! If they can't keep as much of their money, they won't work as hard, won't try as hard to create new businesses, won't try as hard to keep existing businesses going, and the result will be a stultification of the economy.
I'm still simple minded. I don't understand the argument. My own reaction would be to work still harder to earn extra money to make up for the increase in taxes. Am I crazy?
