The Daily Sandwich

"We have to learn the lesson that intellectual honesty is fundamental for everything we cherish." -Sir Karl Popper

Location: Boston, Massachusetts, United States


Monday, January 31, 2005

How to dismantle the New Deal

This piece from the Christian Science Monitor puts things in pretty clear language on privatization-- the admin's plan is to increase taxes on the poor. Here's a thought: why not redistribute the SS of America's wealthiest 1% among the poorest 5% or so?

"Because the surplus payroll taxes were handed over to the federal government (in return for Treasury bonds), this meant ordinary income taxes could be kept low. After all, the federal government has a fixed need for money, and if it gets excess money from payroll taxes it can afford to keep income taxes lower than they'd otherwise be.

But the payroll tax is a flat tax, paid disproportionately by low and middle income workers. The income tax is a progressive tax and is paid disproportionately by high earners."

And the proposed fix? Make the poor poorer so that the wealthy don't have to be prevented from getting wealthier. How about a system where everyone's income goes up? Like it did under Roosevelt and Clinton?