Replacing the payroll tax with some other broad-based tax that is unconnected to a specific worker's wages breaks the link between contributions and benefits.
Wasn't aware that a tax is a "contribution" to anything other than the coffers of government as a politician's slush fund to redistribute in accord with political expediancy.
What Social Security Trust Fund
"The U.S. Supreme Court ruled in Fleming v. Nestor (1960), 363 US 603; that there is no Constitutional right to Social Security benefits. Social Security benefits can legally be cut or eliminated at any time, and beneficiaries have no recourse. The Court held that, "To engraft upon the Social Security System a concept of 'accrued property rights' would deprive it of the flexibility and boldness in adjustments to ever changing conditions which it demands."
If we are going to replace some tax with a progressive consumption tax, it should be the income tax, not the payroll tax.
Hmmmm! Last I looked, the Social Security/Medicare payroll tax on wages is an income tax.
Title 26 US Code Subtitle C Sec. 3101. Rate of tax
- (a) Old-age, survivors, and disability insurance
In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - ***
- (b) Hospital insurance
In addition to the tax imposed by the preceding subsection, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - ***
And goes into general revenues just like any other income tax:
Title 26 US Code Subtitle C Sec. 3501. Collection and payment of taxes
- (a) General rule
The taxes imposed by this subtitle shall be collected by the Secretary and shall be paid into the Treasury of the United States as internal-revenue collections.
To be redistributed at political whim.
If done [convert to a consumption tax] properly, this would increase incentives for work, saving and investment that would boost real economic growth.
Certainly would so why do a half job on it?
I guess some folks just seem to want to keep the 16th amendment and income taxes around and live forever under the income/payroll tax system.
A pile of excretement called by any other name still smells and sticks to the bottom of shoes.
| "a free people that pays slave taxes to its government is willingly training itself for bondage." |
A Taxreform bump for you all.
If you would like to be added to this ping list let me know.
"A pile of excretement called by any other name still smells and sticks to the bottom of shoes"
A very good description of the NRST.
EVANS v. GORE , 253 U.S. 245 (1920)
Your comments please.