Social Security Shortfalls and Tax Cuts for the Rich

tax cuts & social security We had a great chat about social security last week. Now, Ezra Klein shares a graph from the Center on Budget and Policy Priorities.

They point out that the shortfall in social security is roughly equal to the amount of revenue that we lose by extending tax provisions to upper-income taxpayers.

UPDATE: The Center on Budget and Policy Priorities and Megan McArdle debate the numbers and the intent of this graph.

5 thoughts on “Social Security Shortfalls and Tax Cuts for the Rich

  1. I still don’t see the moral case for taking money from the rich young to pay for the rich old. Especially when the .7% of GPD isn’t going to keep Medicare solvent unless SS checks start coming with filterless cigarettes.
    SS spending should be set against other types of spending and revenue sources set against other types of revenue sources.

  2. Megan McArdle’s criticisms only *begin* with:
    For starters, the 0.7% of GDP that it covers only matches the shortfall for a brief period, at least according to the Social Security Trustees report. By the middle-to-late twenties, the shortfall is more than twice the amount of the Bush tax cuts on the rich. Even if we hadn’t already (hopefully) earmarked this money for something else, this would be at best a stopgap measure; the program would rapidly begin putting more pressure on the budge

  3. Forget morals, I don’t see the policy case for taking from the rich young to subsidize the rich old. Why would we want to take money from workers and parents to give an unearned windfall to someone whose social contribution is mostly over? Why is society better off if the money that I would spend feeding, clothing and educating my daughter is redirected by the government to my father?

  4. “an unearned windfall”
    The whole concept of Social Security is that most people *have* earned it. SS depends on how much you worked.
    And we offer it to people who cannot take care of themselves. Yes, it sucks that they can’t, but what’s the alternative? Death panels?

  5. And we offer it to people who cannot take care of themselves. Yes, it sucks that they can’t, but what’s the alternative? Death panels?
    I don’t think anyone here has complained about that part yet.

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