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In regard to SS- Why are benefit-cuts OK, while tax hikes are anathema? [View All]

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LiberallyInclined Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Feb-12-05 11:46 AM
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In regard to SS- Why are benefit-cuts OK, while tax hikes are anathema?
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in both cases, it means less money in people's pockets, and less money they have to put back into the economy.
The main difference is the size of the pool of people the money comes from-
Benefit Cuts would generally affect a smaller pool of people, meaning that they would have to be more severe in terms of the dollar amount per person.
a tax hike would be spread out over a wider pool of people, and the impact would therefore be lessened, in terms of the dollar amount per person affected.

The thing to keep in mind- the program is called Social Security, and not "Individual Security" for a reason- it's intended to keep our social structure intact.

I'd be all for some type of voluntary Federal 401k program on top of the current SS, but not instead, or as part of it.
since the people that would benefit most from individual accounts would be the investor clas- why not start some type of FICA-type tax on capital gains to fund it?
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