Re: On Government Trust Funds


"William F Hummel" <wfhummel@xxxxxxxxxxx> wrote in message
news:7ctrg1to65l2qu4tu282e0lmiq8n4akbel@xxxxxxxxxx
> On Thu, 25 Aug 2005 16:01:50 GMT, "sinister" <sinister@xxxxxxxxxxxxxx>
> wrote:
>
>>Let me pose a normative question instead of my descriptive one: *should*
>>we
>>be running large SS surpluses? Why not just cut the payroll tax down to
>>the
>>level needed for pay-as-you-go?
>
> We should not even have a payroll tax. But if we do, it should not be
> a dedicated tax because that leads to the lock box foolishness I've
> previously described.

If there's no payroll tax, how do you propose to pay for SS?

>>
>>Again, if the trust fund is meaningless, what is the meaning of the FICA
>>tax dollars raised in excess of what's needed to pay current SS
>>obligations?
>>
> FICA tax dollars, whether in excess or not, are no different that any
> other tax dollars. They all become a part of the Treasury's general
> fund and promptly spent back into circulation.

You didn't answer the question.

Again, if FICA tax dollars have no meaning separate from other taxes, why
have a FICA tax?


.

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