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There's also the rise in Social Security taxes under Reagan, which was done to give the Social Security system a surplus to handle the baby boomers' retirement.
by sethg 18y ago
There's also the rise in Social Security taxes under Reagan, which was done to give the Social Security system a surplus to handle the baby boomers' retirement. Since only wages up to a certain level are subject to Social Security tax, the tax affects the middle and lower classes more than it affects the rich.
- Retric 18y agoThe odd part about SS spending is it's vary low friction Income redistribution so it has little impact on the economy where Defense spending has a such a huge negative impact. However, such a large portion is put into the general fund the SS savings is basically just income tax. http://carriedaway.blogs.com/carried_away/2005/04/us_government_s.html http://carriedaway.blogs.com/carried_away/2005/04/us_governm... PS: US GDP growth is slower than the rest of the world so it's hard to think why people think we are such a great example of growth..