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View Diary: Krugman On The Proposed Deal (341 comments)

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  •  I disagree (1+ / 0-)
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    lgmcp

    Raising payroll taxes is going to hit a lot of working people hard. It's a regressive tax and the payroll tax holiday does more to stimulate the economy than income tax cuts.

    Plus, it enables those who are still working, who will be hit the hardest by chained CPI (current older seniors won't be hit that hard), to save more for retirement.

    •  Sure it's great for short-term goals (0+ / 0-)

      but it's a trap -- sadly, a trap that we've already fallen into.  At this point restoring normal SS contributions is already framed as a "tax increase".  Talk about shooting ourselves in the foot!

      But you want to see Social Security transformed into a begruding poverty program for the neediest few, instead of a somewhat decent pension for the many, an indefinte extension of the payroll tax "holiday" is definitely the way to go.

      "The extinction of the human race will come from its inability to EMOTIONALLY comprehend the exponential function." -- Edward Teller

      by lgmcp on Tue Dec 18, 2012 at 02:50:55 PM PST

      [ Parent ]

      •  The flip side is (1+ / 0-)
        Recommended by:
        lgmcp

        that if the payroll tax holiday helps the economy and gets more people back to work, more people pay into SS.

        Sadly, I don't think SS will remain a social insurance system for everyone anyway. Bush and the Republicans squandered the surplus and now there isn't enough to pay for all the boomers. It is going to end up being means tested at some point.

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